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STRATHCONA AND THE 
MAKING OF CANADA 



Digitized by tine Internet Arciiive 
in 2010 witii funding from 
Tine Library of Congress 



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STRATHCONA 

AND THE 

MAKING OF CANADA 



BY 

W. T. R. PRESTON 

LATE COMMISSIONER OF EMIGRATION TO GREAT BRITAIN AND COMMISSIONER 

OF TRADE TO SOUTH AFKICA, JAPAN, KOREA, HOLLAND 

AND SCANDINAVIA 



NEW YORK 

McBRIDE, NAST & COMPANY 
1915 






Printed in Great Britain 



'^ "^. 



CONTENTS 



Arrival in Canada — Rebellion in progress — Journey to Labrador 
— World's jumping-off place — The little girl passing 
Ottawa — A strange romance — Authority of chief officials — 
Military discipline — Foundation of fortune. . . -13 

II 

The Hudson's Bay Company's secret — Explorers and rival traders 
— Suspicion of the Indians — George Brown and the Com- 
pany's possessions — Statesmanlike treatment of the red 
race — Domestic relations — Purchase by Canada. . . 22 

III 

Terms of purchase misunderstood — Effect on Company's shares 
— Panic on the market — Donald A. Smith a purchaser — The 
Riel rebellion — The first martyr — Lord Wolseley's chance. 37 

IV 

Canadian troops at Fort Garry — Treating with the rebels — The 
Company and the rebellion — New trading conditions — 
Competition with a tinker. ...... 47 

V 

Donald A. Smith elected to Parliament — Knowledge of the 
west — Dream of wealth and power — A great leader — 
Parliamentary talent — Buying a public franchise — Election 
subscriptions — Pacific scandal. . . . . -57 

VI 

Reverting to party lines — George Brown's break with the co- 
alition — Parliament of talents — Interest in Parliament — The 
early days in Ottawa — Discovery of the Pacific scandal — 
Investigation by Parliament. ..... 68 



vi CONTENTS 



VII 



PAGK 



The situation in Parliament — Partyism and patriotism — Depu- 
tation to Lord Dufferin — Donald A. Smith's position — A 
political crisis in sight — Donald A. against his party — 
Resignation of the Government. ..... 79 

VIII 

New Government in power — Donald A.'s railway purposes — 
Guarding the nation's heritage — Alexander Mackenzie — 
Lord Dufferin's speech — Tory hatred of Donald A. — In- 
triguing for a charter — Meeting with a patriot. . . 89 

IX 

Donald A. and the American railway — The Dutch bondholders 
— Negotiating with the Official Receiver — Borrowing from 
the bank — Issuing stock to themselves — In a tight place — 
Fortune suddenly realized. ...... 100 

X 

Tory insults to Donald A. — Intrigues for Pacific charter — Senate 
taking revenge — Failure of intrigues — The Government 
obdurate — Historical scene in House of Commons. . . 107 

XI 

Undiscovered intrigue — Before the elections — Elections post- 
poned — Effect of chance conversation — The tempter again — 
Donald A.'s election — Corrupt practices — Loan to the 
Judge 114 

XII 

Sir John A. Macdonald in office again — " So much the worse for 
British connection " — Unseated by the Supreme Court — 
The Pacific railway charter in sight — The agreement — 
Donald A. Smith kept out of sight — Charter hunters' success. 122 

XIII 

Amassing great wealth — The skeleton in the cupboard — Facing 
sudden ruin — Failure to sell bonds — Applying for assistance 
— The penalty for deception — The Cabinet refusal. . 133 



CONTENTS vii 

XIV 

PAGE 

Staggering under the load — An Irishman to the rescue — Frank 
Smith and his colleagues — Cabinet discussion — George 
Stephen's remorse — AScotchman's revenge — The bitter cup. 140 



XV 

Demoralization of public life — Members appeal for funds to the 
syndicate — Fraudulent company subscriptions — A hungry 
lot — Donald A.'s opinion — The cloak for many offences — 
A fortune in a night — Demorahzation run riot. . . 149 



XVI 

The American railway deal — Dealing with the Official Receiver 
— Wants share of the spoils — Thirteen years' lawsuit — The 
syndicate won in the courts — Profits from American deal, 156 



XVII 

The danger to the state — Loading the dice — Louis Riel still a 
factor — Blake's resignation — Moments never to be for- 
gotten — Blake's farewell to Canada . . . . .162 

XVIII 

Muzzling the Press — Donald A.'s fear of criticism — Buying up 
the Globe shares — Unsuccessful efforts at prostitution of 
the Press — Personal admission by Lord Strathcona. . . 170 



XIX 

Once more amid old associations — Political predilections — 
Disallowance on Manitoba's legislation — Driving the golden 
spike — Fighting against slavery — What Manitoba paid for 
liberty 174 

XX 

" And Ahab spake unto Naboth " — Looking for another grab — 
The Intercolonial Railway — An unsatisfactory Prime Min- 
ister — Sir Mackenzie Bowell — The " nest of traitors " — 
A successful cabal . . . . . . .184 



viii CONTENTS 



XXI 



satisfactory First Minister — Fishing for forty millions — 
Sir Donald as High Commissioner — Laurier's political 
strength — Stirring up religious strife — Hierarchy recog- 
nized by the State — Laurier successful — The coming 
Prime Minister. ........ 193 



xxn 

Donald A. changing his politics again — Intriguing against 
Laurier's colleague — The power of wealth — The monetary 
kings win — Where the blow fell — Ambitions never realized 
— Liberals and the hierarchy — An appeal to Rome — Ultra- 
montane and Orange — A Papal decree. .... 203 



xxni 

Making peace with the new ruler — The threatened Royal Com- 
mission —Laurier and Sir Donald — A seat with the Peers — 
Cecil Rhodes and Strathcona. . . . . .213 



XXIV 

Protecting the toilers — Opposition to rival railway lines — 
Knifing the Government policy — Standing by the combine 
— What negligence has cost Canada — Taking the farmer's 
life blood — Departmental neglect. .... 220 



XXV 

Starting new official life — An ancestral mansion — The ghosts 
in every room — Trouble with Agents-General — Sir Claude 
Macdonald — Official invitations — Resenting interference. 225 



XXVI 

Personal characteristics — Never lacking in courage — Reputations 
destroyed — Development of Canada — Solving the emigra- 
tion problem — Strathcona threatened with arrest in 
Germany — Lord Salisbury's warning — Posing as the suc- 
cessful emigration worker — Hon. Clifford Sifton's work — 
Assistance of British Journalism — The Coronation Arch — 
Further Imperial honours. ...... 233 



CONTENTS ix 

XXVII 

PAGE 

Election journey to Canada — Keeping the C.P.R. quiet — Still 
afraid of investigation — The standard of British politics — 
Danger to the State. ....... 248 

XXVIII 

Distribution of wealth — The Strathcona Horse — Consternation 
at a banquet — Visits from the troopers' famihes — A share 
in the good times — Subscription to British political funds — 
The All Red Route — The ruling passion — Fear of possible 
successor — Sir Frederick Borden and Sir Gilbert Parker — 
A pathetic scene — Conclusion there is no hurry to resign — 
Lady Strathcona. ....... 254 

XXIX 

Lord Strathcona's will — Cancellation of Canadian loans — 
Securing friends in high places — Sir George E. Foster — 
Sir Richard Cartwright ruined by rival company — The 
great Samson shorn of his strength — Bleeding the Canadian 
public — Comparison with British procedure — Winnipeg — 
An unforgiven offence — The unaccepted atonement. . 269 

XXX 

What Donald A. Smith has cost Canada — Kingdom stolen from 
the public heritage — What might have been if . , . — Public 
obhgations to be met — What the future will cost — The 
burden bearers — Strathcona's legacy to the Dominion — 
Ottawa and Westminster — Hope from Laurier and Borden. 286 

XXXI 

A retrospect — The Hudson's Bay Company retarding Canada — 
Thirty years too late — Romance of Canadian life — Hope 
for the future — A fascinating personality — The records of 
irrevocable history. ....... 297 

Appendix . ......... 302 



" You do not know the genius of that man's country, sir," an- 
swered Rashleigh, " discretion, prudence, and foresight are their 
leading qualities. These are only moderated by a narrow spirit but 
yet ardent patriotism, which forms, as it were, the outpost of the 
concentric bulwarks with which a Scotchman fortifies himself against 
all the attacks of a generous philanthropical principle. Surmount 
this mound, you will find an inner and still dearer barrier — the love 
of his province, his village, or, most probably, his clan ; storm the 
second obstacle, you have a third — his attachment to his own family 
— father, mother, sons, daughters, uncles, aunts, and cousins to the 
ninth generation. It is within these limits that a Scotchman's social 
affection expands itself, never reaching those which are outermost 
till all the means of discharging itself in the interior circles have 
been exhausted. It is within these circles that his heart throbs, 
being fainter and fainter, till, beyond the widest boundary, it is 
almost unfelt. And, what is worst of all, could you s<urmount all 
those concentric outworks, you have an inner citadel, deeper, higher, 
and more efficient than all — a Scotchman's love for himself." 

Sir Walter Scott : Rob Roy. 



On the last Monday in January, 1914, the great doors of Westminster 
Abbey were thrown open for a Service on all that was mortal of 
Donald Alexander Smith, first Baron Strathcona and Mount Royal. 

The dull misty atmosphere of a winter's day added to the sombre- 
ness and solemnity within the vast Abbey. 

The memory of ten centuries of England's illustrious dead haunted 
the scene. Representatives of the Crown, the Peerage, the Commons, 
the wealth of London, and a great congregation representing the 
Empire, surrounded the purple pall. 

It was a long journey from the Covenanters' rugged Kirk in a little 
village in the north of Scotland, fourscore and ten years previously, to 
this ancient Temple of Peace and Reconciliation — from the Shorter 
Catechism to the magnificent Ritual of the Established Church. 

Life is but a Book of White, 
Wherein each one of us must write 
Until the end — then sudden night. 



THE LIFE AND TIMES OF 
LORD STRATHCONA 

PART I 
I 

Arrival in Canada — Rebellion in progress — Journey to Labrador — 
World's jumping-off place — The little girl passing Ottawa — A 
strange romance — Authority of chief officials — Military disci- 
pline — Foundation of fortune. 

The most important figure in the public life of Canada 
since 1870, although not always in the public eye, has 
undoubtedly been Lord Strathcona. It was not until 
long after he had become an unseen power that the 
people began to realize his influence. For forty years 
his personality stands out in every political crisis in 
the Dominion. He has had far more to do with the 
defeat and victory of political parties since Confedera- 
tion than all other influences combined. The manner 
in which he moulded the tone and character of the 
political life of the country, as well as its Parliamentary 
legislation, is unique. It cannot be said that his object 
was evident when he first appeared on the scene, 
although undoubtedly his own mind was clear about 

the end in view. So successfully did he control the 

13 



14 LORD STRATHCONA 

leaders of political thought, that immense fortunes 
were accumulated as the direct result of his influence 
in the Federal and Provincial Legislatures of the 
country. On many important occasions Parliament, 
without being aware of the fact, simply registered his 
decrees. 

Donald A. Smith, when a lad seventeen years of 
age, landed at the port of Montreal in a supply ship 
owned by an association of traders known as the 
Hudson's Bay Company, and took up the duties of a 
minor clerk in the employment of this Company in the 
desolation of Labrador. He left his native land a few 
months after the last of the kings of the Hanoverian 
dynasty had given place to a young Queen. Behind 
him was peace and contentment. In the new land a 
colony was seething with unrest and even open rebellion. 
Numerous and powerful sections in Canada were up 
in arms against constituted authority, as represented 
by officialism and " Family Compacts," the leader of 
the rebels in the English province of Upper Canada 
being a fellow-Scotchman. The young immigrant 
lived to see the demands of the " rebels " to rule the 
country by popular Government conceded by the 
Queen, and also saw the leaders of the movement 
occupying well-deserved positions of honour and trust 
in the confidence of the Crown and the people. Some 
of these rebels, under more happy circumstances, 
became his warmest personal friends. 

The Hudson's Bay Company was formed in 1670 
with a charter from Charles H to Prince Rupert and 



A LONELY HABITATION 15 

seventeen other noblemen and gentlemen, as the 
" Governor and Company of Adventurers of England 
trading into Hudson Bay. To the Company was 
secured the sole trade and commerce of all those seas, 
straits, bays, rivers, lakes, creeks and sounds . . . that 
are not already actually possessed by or granted to 
any of our subjects, or possessed by the subjects of 
any Christian state." 

The 1200 mile journey from Montreal to the barren 
shores of Labrador severely tested Donald A. Smith's 
willingness to remain with the Company, but there 
was no possibility of retracing his steps. What it was 
in 1838 can scarcely be imagined. Even to-day 
Labrador is the world's jumping-off place. He was 
going to a place where only once a year would tidings 
reach him from the outside world. His companions 
for the greater part would be Indians and wild fowl, 
the stoicism of the one and the plaintive note of the 
other emphasizing the almost overwhelming sense of 
desolation. 

The vast territory controlled by the Company 
covered an area of more than two million square miles 
in British North America, and was peopled largely by 
utterly uncivilized Indians. Early in the seventeenth 
century the Jesuits had formed the first noble band 
of devoted self-sacrificing missionaries who pressed 
their way with the story of the Cross to that distant 
interior, but they were only partially successful upon 
a fringe of the roving population. The majority con- 
tinued their heathen practices until comparatively 



16 LORD STRATHCONA 

recent times. Into the eastern part of this vast 
region, " Donald A.," as he subsequently became 
familiarly known, plunged to seek his fortune. 

The son of poor but industrious parents living at 
Forres in the north of Scotland, he started off in 1838, 
and taking with him a small outfit that could be easily 
looked after, engaged in the service of the Company 
at j^20 a year. Although quite a lad, he was fairly 
tall for his years, and straight as an arrow. His features 
were rather heavy and unattractive, except for the 
force of character glowing in his clear blue eyes, and 
his head was crowned with a thick growth of light 
brown hair. There was nothing, however, about his 
general appearance foreshadowing the power and in- 
fluence that he was destined to exert in the new 
country long before that century should close. 

By a remarkable coincidence just about this time 
a Hudson's Bay Officer named Hardisty, who had 
married in the far west, was making his way to 
Labrador through the waterways between the Georgian 
Bay and the river St. Lawrence. He marked out the 
same route that will at no distant date be traversed 
by the Great Georgian Bay Canal. He was accom- 
panied by his family and a considerable number of 
attendants. They travelled in a dozen large birch- 
bark or Indian canoes, which had to be portaged 
through the forests to navigable waters when rapids 
or falls obstructed their passage. This no mean feat 
occupied a good part of that hazardous journey. In 
this company was a gentle, interesting little girl of 



A LONG CANOE JOURNEY 17 

twelve or fourteen years, whose constant companion 
was a young wild fowl that had been captured early 
in the journey, and which she had completely tamed. 
Perhaps the good fairies were then weaving the threads 
of the strange romance which entwined her life with 
the young Scotch lad's, then on his way to carve out a 
future in the new world. She became his wife by 
the rites of Labrador, as no recognized legal facilities 
existed for a marriage ceremony. The formal mar- 
riage, according to the ritual of the Established Church, 
took place more than half a century later in the 
British Embassy in Paris. This was officially an- 
nounced after Lady Strathcona's death. Seventy 
years after that long canoe journey, when the little 
girl had become the centre of a great social circle in 
London, surrounded with all that wealth and luxury 
could supply, she still recalled the delight of that 
early experience in travelling, and had a vivid recol- 
lection of the rugged grandeur of the great bluffs 
upon which now stand the Parliament Buildings 
overlooking the Ottawa river, and the wild beauty 
of the primeval forests and majestic rivers of the 
vast country through which she had journeyed as a 
small child, accompanied by her great white-winged pet. 
In the various positions that Donald A. Smith 
filled in the work of the Company, from the bleak 
and inhospitable coast of Labrador to the Hudson 
Bay, and then across a vast monotonous stretch of 
country to the foot of the Rocky Mountains, the 
years moved slowly that witnessed his promotion to 



18 LORD STRATHCONA 

Factor, or Superintendent, over the many forts or 
trading posts scattered through the western district. 
In this position he was able to exercise appreciable 
influence in the territory allotted him, together with 
a distinct increase in authority over the minor em- 
ployees of the Company, far beyond that which he 
had previously wielded. 

While appointment to positions of greater respon- 
sibility was largely directed by seniority, the final 
confirmation in all cases had to come from the Board 
in London, where the record of every ofl&cer was 
kept with great care. 

To Donald A.'s comparative youth no objection was 
taken by the head office, as his record in the books of the 
Company was all that could be possibly desired. The 
position of Factor was one of considerable responsi- 
bility. This officer was absolute ruler in his own dis- 
trict, not only in dealing with his subordinates, but 
with the native tribes as well. Like the Centurion of 
old, the Factor's commands must be obeyed. No one 
could question his control. The isolated situation 
of the officers naturally fostered autocracy on the 
part of the chief, there being none of the subduing 
influences that come from contact with large numbers 
of one's own caste. This self-assertive tendency was 
encouraged by the Company rather than otherwise. 
It brought about a spirit of military discipline that 
was much desired ; also, it formed a barrier against 
too intimate relations between superior oflScers and 
their subordinates, which, if allowed to exist to any 



NEVER-FORGOTTEN WRONGS 19 

great extent, might result in the spread of a system of 
dishonesty in the trading operations of the Company. 

It is not surprising that there were some veritable 
tyrants among the factors who did not hesitate, when 
strong personal reasons existed, to send objectionable 
subordinates on dangerous missions. There are two 
or three instances on record of these who, instead of 
going into regions to which they had been ordered, 
and which were reputed to be veritable death-traps, 
slipped quietly away to seek employment with a similar 
association of traders in the United States. Then, 
twenty or thirty years after their supposed death, 
they unexpectedly returned, having, meantime, 
reached official and financial positions enabling them 
to defy their old tyrants, and prove that neither by 
time nor absence had official or domestic wrongs been 
forgotten. 

Opportunities were sometimes taken advantage of 
by officers to trade on their own account with the 
Indians, although usually all profits from buying or 
selling were claimed by the superior officers for the 
Company. As one of the most prominent in authority, 
Donald A. Smith secured the confidence of his fellow- 
officers, and was entrusted by them with their savings 
for investment. Up to this time the officers had been 
accustomed to draw their salaries once a year. Donald 
A. got them to give him authority to draw their 
cheques every month. This obviously gave him 
control of large sums of money, and made him an 
important personage in banking circles. The only 



20 LORD STRATHCONA 

stipulation his fellow-officers made was that they 
should receive a small annual interest of three per cent. 
Donald A.'s duties rendered it necessary that he should 
frequently visit Montreal for the Company. In the 
early years, when he had to go to Fort Garry, this 
necessitated an overland journey of more than one 
thousand miles before connection could be made with 
the eastern railway system of the United States, by 
which the Grand Trunk Railway could be reached. 

During one of these visits to the commercial capital 
of Canada he was persuaded to invest his savings in 
the stock of the Bank of Montreal. This stock in a 
few years largely increased in value. Foreseeing this 
with his usual shrewdness, he also invested the moneys 
entrusted to him by his associates. 

In course of time, consequently, his name ranked 
among the largest shareholders in the Bank of Montreal, 
and as a natural result he was elected to a directorship. 
The confidence thus shown, as well as the honour 
conferred on him, was a fitting recognition of his 
personal interest in the Bank. His introduction did 
not prove an inconvenience to the other directors, 
inasmuch as his frequent and extended absence on the 
Company's business did not allow him to attend the 
meetings of the Board with regularity. His active 
interest in the management developed in later years 
in a manner which must always remain unique in 
the history of the great monetary institutions of the 
country. As one after another of the officers of the 
Company wanted to withdraw their deposits from his 



FAR-REACHING AUTHORITY 21 

care, they were promptly paid out of his private 
means. Through the savings of his colleagues and 
his investments in this way, was laid the foundation 
of his fortune. 

In the Company one promotion followed another, 
and owing to a chance visit to London, where he 
created a most favourable impression at the head 
office of the Company, he was given promotion at 
an important juncture over several of his seniors in 
office. Eventually he found himself, at the time the 
Company's territorial interests passed under the control 
of the Government of Canada, installed at Fort Garry, 
the present site of Winnipeg, as Resident-Governor 
of the Company, exercising absolute sway over that 
vast tract of land which extended from Hudson Bay 
to the foot of the Rocky Mountains — an area greater 
than France, Germany, Austria, Hungary, Scandinavia, 
Holland and Belgium combined. To this important 
position he was appointed in 1869. 



II 

The Hudson's Bay Company's secret — Explorers and rival traders — 
Suspicion of the Indians — George Brown and the Company's 
possessions — Statesmanlike treatment of the red race — Domestic 
relations — Purchase by Canada. 

For many years little interest had been taken by Old 
Canada in the Great Lone Land of Western British 
North America. In the Canadian schools as late as 
the decade between i860 and 1870 it was taught that 
the Hudson's Bay Territory was as uninhabitable as 
the Sahara Desert, only instead of being barren sand, 
it was believed to be largely covered with ice and snow. 
Greenland was, in fact, looked upon as offering a more 
suitable field for exploration. Nothing was left undone 
by those charged with the administration of the affairs 
of the Hudson's Bay Company to confirm this im- 
pression. Officers of the Company were not allowed 
to communicate the facts about the natural resources 
of that boundless territory to their friends. The 
censorship that was continually exercised over the 
contents of private and confidential letters was such 
as would have suited the most extreme military 
martinet in time of war. There was nothing that was 
allowed to escape the vigilant eye of the Company in 

the earlier days. The heavier the seal or crest that was 

22 



TREATMENT OF THE INDIANS 23 

expected to ensure secrecy, the more did the letter 
become an object of suspicion, and the more unhkely 
was it to reach its destination without the contents 
becoming known. In so far as the civiHzed world 
was concerned, the Company intended that the North- 
west of British America should be a sealed book. 

It must not be overlooked that the treatment of 
the Indians by the Company during the long period 
that they have held unlimited sway in the Great West 
is worthy of the best traditions of British statesman- 
ship. The Indians were recognized as belonging to 
humanity and having unquestionable rights to life 
and property. This recognition on the part of the 
officials of the Company brought about a sense of 
confidence and trust in the British flag among all the 
tribes. That the patience and wisdom of the Com- 
pany's servants was frequently severely tested, the 
records of the Company prove. The contrast that 
has ever marked the treatment of the Indians in the 
United States by the authorities, and that which the 
tribes received under the British Government can 
never be forgotten. The one is marked by rapine 
and massacre — the other by peace and order. 

Bancroft, the American historian, states " that the 
officers and servants of the Hudson's Bay Company 
were as much gentlemen by instinct in their treatment 
of Indians, as in their treatment of civilized men and 
women. Wherever they had the country entirely to 
themselves there was little trouble with the natives. 
Their management of them was perfect. They 



U LORD STRATHCONA 

treated them first of all as human creatures, not as 
wild beasts; they were to them as children, not the 
enemy of civilization. In their intercourse they were 
humane, in their dealings honest. Offences were 
followed by justice, not revenge. ... In this con- 
nection, however, the Dominion must never forget 
the great and valuable services rendered by the 
missionaries of the Roman Catholic and Protestant 
faiths, and of the beneficial influence exercised by those 
zealous men over the natives of the former chartered 
and licensed territories of the Hudson's Bay Company." 
The domestic relations of the Hudson's Bay officials 
was the natural consequence of their restricted sur- 
roundings. This phase of personal experience is not 
peculiar to the territory of the Hudson's Bay Company. 
It is the history of the human race from the dawn of 
time. 

" And it came to pass, when men began to 
multiply on the face of the earth, and daughters 
were born unto them, that the sons of God saw 
the daughters of men that they were fair ; and 
they took them wives of all which they chose." 

Race, colour, or creed has never been an insur- 
mountable obstacle between the human sexes. From 
the Elamites to the Romans, from the Csesars to the 
present day, the same story is told. The march of 
European civilization is marked by the advent of the 
Eurasian and the Half-breed. Among the most 
noticeable have been the English and French mar- 



THE ENGLISHMAN'S EGOTISM 25 

riages in India, the Dutch in Java and South Africa, 
the Spanish in the tropics of North America, the 
New Zealander with the Maori, the American and 
the Negro, and the Hudson's Bay Company officials 
with the Indian tribes of the Great West. 

In his restricted vision the average Englishman 
endeavours to convince himself that the people of 
these Islands are the salt of the earth ; forgetful that 
a certain degree of self-assurance may have not a little 
to do with the claim, so ill-founded after all, to this 
nation being the only high moral type in existence. 
The fact is indisputable that every nation or people 
has its classes of high and low degree. If courage, 
diplomacy, ability to govern, and added thereto the 
inspiration of patriotism for home and race, is the 
standard by which human greatness be measured, 
then the difference between the dark-skinned races 
and the whites is of but slight degree. Nevertheless, 
the general prejudice against the infusion of coloured 
blood in the Caucasian family is a factor in human 
history that can never be entirely overlooked. The 
fear of reversion to type, whether justified or not, 
is ever present. 

The Hudson's Bay Company officials, however, had 
no special convictions on this point. In fact there 
was every possible reason why there should be none. 
They were surrounded by a virile, healthy, sturdy type 
of humanity. They were isolated from their kindred, 
and there was no indication that things would ever 
change. The Company took no steps to emigrate the 



26 LORD STRATHCONA 

gentler sex from Europe to the distant continent. 
It was not dreamed that the five months' weary journey- 
could ever be shortened to five days. The natural 
consequences, therefore, were inevitable. Half-breeds 
became a recognized element throughout the territory. 
But as generation succeeded generation, marrying, as 
they almost invariably did, with the scattered white 
population, the evidence of ancestry almost disap- 
peared in many families. The sons and daughters 
were educated in the schools provided by the Church, 
and they became thoroughly Caucasian in thought 
and custom. 

It should not be forgotten that the character or 
standing of the North American Indian in the seven- 
teenth and eighteenth centuries, when the greater 
number of the original marriages between the repre- 
sentatives of the Company and the daughters of the 
Indians took place, was entirely different from the 
Indian of the present time. Then he was a warrior, 
brave and bold, and not beholden to the bounty of 
the State for his existence. He disputed the right of 
the white man to the possession of his heritage. 
For the sake of his wigwam and his tribe he guarded 
the Passes of the Alleghanies against the march of 
the early settlers. He fought side by side with the 
British forces against the revolting colonists in the 
War of Independence. He was a diplomatist, entering 
into treaties with rival tribes, the survival of the 
fittest being then as now the only recognized authority. 
He was a hunter, roaming a vast continent, probably 



THE PRIDE OF ANCESTRY 27 

living a more highly moral life than his white 
brother in European centres, and punishing im- 
morality with a severity that we can only characterize 
as the acme of cruelty. 

To be a descendant from a race of that character 
may have its disadvantages, but it furnishes no cause 
for regret, except that of secret vanity. The demoraliz- 
ing influences of civilization had not then reached the 
great prairies of the west. The Caucasian, however, 
was coming with his superior weapons of offence and 
defence to assert his supremacy. It is indeed a sad 
commentary upon a boasted civilization that the 
degeneration of ancient and noble races has so fre- 
quently followed this current of events. The Kaffirs 
who labour in the mines of South Africa carry to 
their kraals the seeds of moral and physical disability 
to decimate the race, just as the noble type of North 
American Indian has given place to a sickly, diseased 
type of humanity, since coming in contact with the 
people who succeeded the Hudson's Bay Company in 
the western prairies. 

The Englishman's prejudice is naturally strong 
against a fusion of the races, and there are always 
those on hand to stir up the latent fires. The demand 
that the Empire shall be reserved for the Englishman 
if possible, but that it must be held for the white 
man at all hazards, appeals to the populace. Better 
to leave great natural resources, that might add 
enormously to the wealth of the Empire, undeveloped, 
than allow the work to be done with other than white 



28 LORD STRATHCONA 

labour, though climatic conditions may be such that 
the white man cannot exist in such surroundings. 
Upon this declaration as a nation we are pinning our 
faith. In how far this prejudice of colour may prove 
a rock of offence in the pathway of the future of the 
Empire is a problem for statesmen to solve. At any 
rate, this prejudice did not appeal to many of the 
officials of Prince Rupert's company of traders and 
adventurers, and the world or the Empire seems none 
the worse. 

Expeditions were undertaken from time to time 
to explore these vast regions, and companies had been 
organized to open up trade with the Indian tribes. 
These companies were encouraged and promoted 
mostly by merchants in Montreal. For many years 
the basis of a very profitable business by Montreal 
traders had been carried on with the Indians of old 
Canada, but with the opening up of the country, 
and the continually increased stream of settlement 
to the old provinces, this trade had gradually declined, 
so that the merchants were all the more anxious to 
establish permanent relations with the tribes in the 
Far West. The Hudson's Bay Company notified all 
concerned that it was their determination to prevent 
either trading or exploration by outside parties. It 
was, therefore, well understood that anything that 
might be accomplished was at the personal and 
financial risk of all concerned, and such enterprises 
might be met with open hostility of fire and sword. 

The new business organizations were soon ruined 



NO ROOM FOR TRESPASSERS 29 

by the greater forces of the Hudson's Bay Company. 
The possible competition in trade and exploration that 
appeared to be looming on the horizon of the Great 
Lone Land was summarily crushed. But the indi- 
vidual traders and explorers were more persistent, 
having no interests to risk other than their own. It 
was not, however, until many were known to have 
gone into the vast region, of whom no tidings ever 
again reached the outer world, that direct efforts to 
overcome the tyrannical rule of the Company began. 
The Company claimed that the territory was a special 
preserve. This, it was asserted, was justified, (i) by 
the rights conferred under the Imperial Charter 
issued by Charles II ; and (2) by the alleged fears 
that competition with other whites would have 
a tendency to unsettle the habits of the Indians, 
and might, perhaps, result in their latent fighting 
instincts being aroused. 

Notwithstanding the efforts put forth by the 
Company, however, it was realized that, unless the 
active co-operation of the Indians could be secured, 
white trespassers would inevitably make inroads into 
the trade of the Territory. Steps were therefore taken 
to unite the tribes against all whites not officially 
connected with the Company. The means adopted 
were worthy of the object desired, but could only 
have been the outcome of an extraordinary disregard 
of the ordinary amenities of life. The Indians were 
told that these outsiders would rob and cheat them 
in the barter of their furs ; and that the special object 



80 LORD STRATHCONA 

of these intruders in coming into the territory was to 
kidnap the young squaws and sell or use them for 
immoral purposes. Nothing could have been more 
untrue. The reputations of the Montreal merchants 
stood exceedingly high in all their deahngs with the 
Indians. The intruders could not afford for their 
own sakes, to be less honest or moral than the officials 
of the Company. But competition with outsiders 
meant that much higher prices would soon have to 
be paid to the Indians for all that they might have 
to sell. 

Yet the Indians, naturally suspicious, readily ac- 
cepted the suggestions given by the Company as 
sufficient justification for treacherously murdering 
white men who could not prove their connection with 
the Company. Missionaries tried their hardest to 
persuade the Indians not to carry out such a pohcy. 
But they were opposed by the medicine-men of the 
tribes, who saw, in accentuating the wishes of the 
Company, a chance to magnify their own importance, 
and perhaps weaken the adhesion of the christianized 
Indians to the Church. It is not surprising, therefore, 
that many whites who ventured into the Territory 
never returned to their friends, nor that not a few 
scalps decorated the wigwams of the Indians. 

The poHcy of the Hudson's Bay Company, trading 
under the authority of a Royal Charter, was altogether 
different from that adopted by the East India Company 
and the Chartered Company of South Africa. The 
Hudson's Bay Company from its inception showed an 



LIGHTING UNCONTROLLABLE FIRES 31 

utter disregard of the value of the Hves of outsiders 
when they affected its pockets, and an equal disregard 
for honour and truth when these could not be turned 
into marketable commodities. It seems undeniable 
that corporate bodies may, with impunity, be guilty 
of offences that would inevitably bring down upon 
individuals the most condign punishment. 

No efforts were made to distinguish between traders 
and explorers. It may be granted that traders were 
objectionable from the standpoint of possible com- 
petition with the Company, however little the Com- 
pany was justified in placing their lives in one scale 
to be out-weighed by the addition of a few pounds 
to the revenue of the Company on the other. But 
explorers belong to a different order ; their work is 
essentially scientific and educative. The civilized 
world, looking for new homes, had a right to infor- 
mation. But all were classed together and doomed 
by the Company to the same fate. Everything was 
done, however, to protect the lives of the Indians. 

In the management of the East India Company and 
the Chartered Company of South Africa there has, 
probably, been a want of consideration shown in 
regard to the lives of native races, but whites and 
Europeans have always been protected with all the 
authority at the command of the companies. The 
retribution that was the natural outcome of the 
policy of the Hudson's Bay Company came later with 
appalling force. They had lighted fires which they 
could not control. 



82 LORD STRATHCONA 

In the meantime, through one source and another, 
sufficient information reached the public to justify the 
beHef that vast possibihties existed for the expansion of 
a great Canadian nationality in the region under the 
jurisdiction of the Hudson's Bay Company. As early as 
1 85 1, one of the political leaders of Old Canada, George 
Brown, commenced an agitation in the columns of 
the Toronto Globe, the most influential newspaper 
of Canada at that time, for the early cancellation of 
the territorial jurisdiction of the Hudson's Bay 
Company, and the acquisition of all the rights of the 
Company by the Government. George Brown, as his 
name indicates, was Scotch, a family connection of 
the Nelsons, publishers in Edinburgh. So that he 
was only carrying out the family tradition, when on 
his arrival in Canada in the early 'forties, he established 
a newspaper in Toronto, then known as " Muddy York." 

George Brown was of commanding appearance, 
being unusually tall even for one of his race, and 
his force of character was extraordinary. Having 
once taken up a public policy his advocacy never 
ceased until success crowned his efforts. His news- 
paper had an influence on the populace such as no 
other had, or probably ever will have, in Canada. 
Every fibre of his being was touched with patriotism 
of the highest type. His newspaper breathed his own 
personality upon all great questions, which is still a 
living spirit in old Canadian families. Students of 
the Globe were fired with the loftiest ideals of the 
duty of citizenship — the public interest gave place 



UNCOMPROMISINGLY RIGHT 33 

to every other consideration. This is one of the 
causes of the purity of pubHc Hfe during that period 
in the history of Canada. PoKtical opponents sneered 
at the Globe as being " the Bible of the Grits," as 
the Liberals of the day were called. Belonging to 
an advanced Calvinistic school in his early days 
in Canada, George Brown expressed extreme views in 
regard to the Catholics of Lower Canada, but in 
later years his prejudices gave way to ardent admira- 
tion for their character and institutions. Both in 
and out of Parliament he exerted a deep influence on 
the electorate of the country. Politicians have said 
that his unbending disposition, his lack of a com- 
promising spirit, made him impossible as a successful 
political leader. If success is to be judged by length 
of time in public office, this may be true. But as a 
patriot, having no object to serve other than the 
development of his adopted country, making no 
personal gain from positions that he held in public 
life, George Brown's political record stands as a fitting 
example to Colonial statesmen for all time. 

It was from this source that the first clarion was 
sounded for the right of Canada to hold undisputed 
sway over the Great Lone Land of the west. The 
demand for possession by Canada was met by the 
Company with the publication of statements assuring 
Canadians that the whole territory was not worth a 
farthing, except for furs — that the climate was such as 
made living impossible to others than Indians — and that, 
at any rate, nothing would grow in that vast territory 



84 LORD STRATHCONA 

that could be profitable to white labour. These efforts 
to deceive the public were effective for yet another 
twenty years. But during this period reliable infor- 
mation leaked out about the agricultural possibilities 
of those great prairies, notwithstanding the drastic 
methods adopted by the Company to prevent intelli- 
gence reaching those who were anxious for Canadian 
expansion. The Dominion Government finally re- 
solved to take definite action. An appeal was made 
to the Imperial authorities, and the assurance was 
given that the Charter would be cancelled, unless 
reasonable terms for the purchase of the rights of 
the Company by Canada could be arranged. This 
was very properly taken by the Company as notice 
to quit. Negotiations finally resulted in the Canadian 
Government paying the Company one million and a 
half dollars (^300,000) in cash. They agreed also to 
set apart tor the Company one square mile and three 
quarters, 1 1 20 acres, in each township hereafter sur- 
veyed in the territory, south of the North Saskatche- 
wan river (about the latitude of Edmonton), and also 
certain specified areas around the Company's posts. 

In other words the Company was to receive from 
the Government an extensive area in the wheat- 
growing belt. The area that the Company is entitled 
to will eventually aggregate seven million acres or 
more, probably reaHzing $150,000,000 (^{^3 0,000,000) 
to the Company. If the actual facts about the 
fertility of the soil, as well as the climatic conditions, 
had not been so misrepresented, no such arrangement 



SOMETHING HIDDEN 35 

would have been possible. At the very time that the 
officials of the Company were declaring that the country 
offered no inducements for settlement, their records 
show that certain lands in the vicinity of the Company's 
posts at Battleford, Qu Appelle, Edmonton and Fort 
Garry, had been under cultivation for more than a 
century, and that they were then yielding bountiful 
crops, although the soil had never been artificially 
fertilized, and was only being cultivated upon the 
most primitive lines. 

It had long been evident to Canada that, in the 
negotiations for the possession of this territory, the 
Canadian Government was hopelessly handicapped by 
want of information. Not a few explorers had fol- 
lowed compelling impulses to search the hidden secrets 
of the west, in the manner so graphically described 
by Kipling — 

" Something hidden. Go and find it. 
Go and look behind the Ranges — 
Something lost behind the Ranges, 
Lost and waiting for you. Go." 

And they had gone to their doom. Instead of 
returning to those who anxiously witnessed their 
departure, they had found lonely graves in the vast 
sunlit waste of the west. Perhaps it was too much 
to expect the Company to give its case away while 
negotiations were inevitable at some not distant day 
for the sale of its rights to the Dominion of Canada. 
It was also advisable that not only the Government, 
but the general public should be unaware of the 



36 LORD STRATHCONA 

value of the consideration which the Company would 
demand for the cancellation of its franchise. Com- 
panies, it may be claimed, have no souls and are 
therefore not to be held as strictly responsible on 
points of honour as private individuals ; and it may 
also be claimed with no less force, that a national 
trusteeship is a proper object for exploitation. This 
view has been, apparently, accepted by those who 
subsequently accumulated wealth through the develop- 
ments that followed the passing of the Hudson's Bay 
Territory over to the Dominion of Canada. 



Ill 

Terms of purchase misunderstood — Effect on Company's shares — 
Panic on the market — Donald A. Smith a purchaser — The Riel 
rebelHon — The first martyr — Lord Wolseley's chance. 

On the announcement that the Dominion Govern- 
ment had carried the negotiations to a successful 
conclusion for the possession of the Hudson Bay Terri- 
tory, the investing public in Great Britain and Canada 
conceived the erroneous though, perhaps, natural idea 
that the Company had been forced out of its rights upon 
very unfavourable terms. A circulation of that rumour 
was all that was necessary to cause a panic among a 
large number of the scattered shareholders of the 
Hudson's Bay Company. Intense anxiety was mani- 
fested to effect sales on the London market. The 
holders of many of these shares were widows and 
orphans of Army and Navy officers of limited means. 
They had not been ofhcially notified or advised that, 
under the arrangements which had been effected with 
Canada, the assets of the Company were likely to 
become exceedingly valuable, rendering dividends for 
generations in excess of the most sanguine expectations 
of the original founders of the Company. 

There was one, at least, who did not find his courage 
deserting him at this juncture, nor was he in any 

Z1 



88 LORD STRATHCONA 

doubt as to what to do under the circumstances. 
This was Donald A. Smith, the then Resident- 
Governor in Canada of the Company. His purpose 
was not made known to the pubhc, nor did he feel 
that he was called upon to take the panic-stricken 
shareholders into his confidence. If he had faith in 
the ultimate wealth that would accrue to the Company 
as the result of the bargain that had been made with 
the Canadian Government ; and if those whom he 
represented in the Company's management in Canada 
had not sufficient confidence in him to ask his advice, 
the mistake they made in parting with their shares, 
as well as the consequences of their want of faith in 
the future of the Company, must be their own. On 
his side Donald A. Smith could claim that if he had 
become possessed of information which might be turned 
to his personal profit, it could scarcely be expected 
that he would proclaim it from the housetops. 

It is, therefore, not surprising that Donald A. 
Smith's hand was not seen in the market, but that 
through trusted agents he secretly purchased all the 
Hudson's Bay stock that was offered. His confidants 
served him well. Not a proffered share was missed, and 
not a hint of the great coup that was being effected got 
beyond the trusted circle. The prices ran from ^^9 to 
_£i2 per share. It is interesting to know that by 191 1 
the shares of the Company were quoted on the Lon- 
don Stock Exchange at ;fi30, an increase in value of 
over thirteen hundred per cent. In addition to this, 
however, between 1872 and 191 1 the entire capital 



AN EASY ROAD TO FORTUNE 89 

stock of the Company was repaid to the shareholders 
in full six times in the form of special bonuses, ex- 
clusive of ordinary dividends. Others in his position 
and with his aspirations, perhaps, would have followed 
exactly the same course. But very many, whose worldly 
possessions were somewhat Hmited, only learned when 
it was too late that in parting hastily with their shares 
they had unconsciously assisted the chief officer of 
the Company in Canada to realize the ambition of a 
lifetime. Donald A. Smith found himself after the 
panic in the market had passed in actual control of 
the Company. Henceforth he would no longer be 
the subordinate of a London Directorate. He could 
elect the members of the Board himself, he would 
appoint the officers of the Company, he would 
control its policy, he could also pay off some old 
scores in the West; and, far more important than 
any other consideration, he would be the principal 
participator in the enormous profits that must even- 
tually accrue to the Company as the result of the 
favourable terms which had been made with the 
Dominion of Canada. In conversation once with 
the writer on the subject of his large holdings in the 
Hudson's Bay Company, Lord Strathcona intimated 
that it was the proudest moment of his life when he 
finally secured control of the majority of the shares 
of the Company. This possibiHty had always seemed 
so absolutely remote that he could hardly realize the 
fact when it was accomplished. 
The payment of the amount agreed upon, however, 



40 LORD STRATHCONA 

did not ensure peaceable possession of the territory by 
Canada. The first evidence of the intention of the 
Government to assume control was coincident with 
an outbreak of rebellion of half-breeds under the leader- 
ship of Louis Kiel. This action of a portion of the 
native population might possibly be looked upon as the 
natural outcome of the oft-repeated advice of the Com- 
pany about the alleged danger to the native races of 
allowing whites, who were not in the service of the 
Company, to enter the territory. The half-breeds had 
everything in common with the full-blooded Indians, 
although a great many of them had holdings of their 
own along the banks of the Red River, as well as in the 
vicinity of the Company's headquarters at Fort Garry. 
The leader of the rebellion, Louis Riel, was an educated 
half-breed. All his sympathies, as well as his associa- 
tions, were with the full-blooded Indians. The Church 
had educated him hoping to capture him for the 
priesthood. Unfortunately it had failed. He pre- 
ferred to be recognized rather as in full sympathy 
with the Indians, than as a half-breed, and he was 
looked upon by them as their leader. Everything 
that might prejudicially affect the tribes was regarded 
by him as having a bearing on his own life. Louis 
Riel had imbibed to the fullest extent the teachings 
of the Hudson's Bay Company as to the undesirability 
of the presence of white men in the territory who 
were outside its charmed circle. The chief resident 
officers of the Company might be forced to change 
their views on this subject, but the sudden change 



REASONS FOR REBELLION 41 

was a sharper corner than Louis Riel and his followers 
could easily accommodate themselves to. 

Information had reached the outside world that 
the negotiations between the Government and the 
Company were likely to be successful, and already 
a few enterprising and restless spirits from the western 
States had arrived at Fort Garry. Their presence 
was regarded by the Indians and half-breeds as 
ominous of a flood that might soon roll on with resist- 
less fury, unless the new-comers were dealt with in 
the most summary manner. The unhappy results 
of leniency, judged from an Indian standpoint, were 
only too evident in the events that were taking place 
in the republic immediately to the south, where the 
Indians were being slaughtered, rapined and robbed 
of their ancient heritage without the smallest mercy. 
The fears so carefully instilled into the minds of the 
Indians by the Company for generations, until they 
had become a tradition, became intensified, and this 
was one of the great forces behind the rebellion. 

During the absence of the local Governor of the 
Hudson's Bay Company in the east, Louis Riel and 
his followers got beyond control. Suggestions were 
made later that local officers of the Company en- 
couraged Riel in the early stages of the rebellion. 
At any rate Riel procured all his arms and ammunition 
from the stores of the Hudson's Bay Company. 
Encouraged by the fact that there was no authority 
to question his power, Riel caused the arrest of some 
of the most pronounced opponents to the course 



42 LORD STRATHCONA 

that he was taking. One Thomas Scott, although 
he had not been the least offensive to the half-breeds, 
incurred Kiel's displeasure. After a summary trial by 
the provisional government which Kiel had formed, 
Scott was sentenced to death, and secretly buried under 
cover of night. Those who took part in the grim 
tragedy allowed no ceremony to sanctify the grave. 
The spot was not marked, nor was it ever known, though 
many years afterwards, when Winnipeg was expanding 
into a city, the solitary skeleton of a man was found 
where labourers were excavating for the foundations 
of a great warehouse. 

The murder of Scott seemed to rouse the dormant 
Indian passions, and a general massacre of the whites 
was feared. To secure protection they took refuge 
within the palisade of the Company's fort. Pre- 
parations were made for an attack, which fortunately 
did not take place. The Nemesis following the 
unwise policy that the Company had so determinedly 
carried out in regard to the presence of whites in the 
territory seemed imminent. They had fired a mine 
which threatened appalling results. Fortunately, 
however, there was a protective power at hand. 

In the meantime the authorities at Ottawa, un- 
conscious of the serious trend of events at Fort Garry, 
were constructing the basis of official administration 
in the newly acquired territory. A member of the 
Cabinet, Hon. William Macdougal, an exceedingly 
able administrator, was appointed Lieut. -Governor. 
He selected his staff and proceeded to Fort Garry 



A GOVERNOR WITHOUT AUTHORITY 43 

(Winnipeg) by rail as far as he could go through the 
United States, and then by overland stages to the 
Canadian border. Here, however, he was faced by 
Louis Kiel's provisional government, and threatened 
with Scott's fate if the party persisted in entering 
the country. The prospects were not encouraging, 
as Mr. Macdougal had no military force to assist in 
his administration of the country. He therefore 
retraced his steps to eastern Canada — only to make 
the amazing discovery when he arrived at Ottawa, 
that owing to carelessness, excitement or worse in 
official circles, caused probably by the disturbing 
news that had reached the capital after his departure 
for the west, the Governor General's Proclama- 
tion annexing the Hudson's Bay Territory to the 
Dominion of Canada had not been issued. In point 
of fact, therefore, the so-called Lieut. -Governor of 
the Territory who had appeared on the threshold 
of the west, and had been refused admission by 
Riel, had really no official standing whatever. The 
position to which he had been appointed did not, 
in fact, exist. On his return to Ottawa, Parliament 
being in session, he resumed his seat, occupying a 
desk on the Opposition side of the House, from 
whence he demanded explanations from the Govern- 
ment ; for when news of Scott's fate reached eastern 
Canada the whole country became infuriated. With 
the general condemnation of Riel, there were many 
who found a palliation for his offence in consequence 
of the blame attached to the long-continued policy 



44 LORD STRATHCONA 

of the Hudson's Bay Company officials. They were 
severely censured for not breaking down the barrier 
they had erected between the native population and 
the explorers ; or, at any rate, in making no attempt 
to allay the fears that they had fostered as to the 
nature of the new administration. The view was 
held strongly in official circles that Riel was not 
altogether at fault, or if so his offence was not too 
great to be pardoned. Archbishop Tach6 declared 
that the Government authorized him to promise 
Riel an amnesty, and under instructions from Sir 
John Macdonald,^ Donald A. Smith secretly paid Riel 
$5,000 to leave the country for the time being. 

The promise of an amnesty was afterwards denied 
by the Government. At any rate, it was unfulfilled. 
In the end^ Louis Riel, once patriot, leader, the idol 
of a proud and fiery race, expiated his crime as if he 
had been merely the commonest murderer. Few 
tears were shed for his lost glory, except in the province 
of Quebec, where there are still many who cherish 
the memory of the misguided patriot of those days. 

Viewing the situation from Ottawa, it was absolutely 
necessary that a mihtary expedition should be des- 
patched to Fort Garry for the purpose of quieting the 
disturbances in the newly acquired possessions. This 
became more evident when the Lieut.-Governor, who 
had been appointed to take charge of the new province 
by the Governor-General, returned to Ottawa. Pre- 

1 Parliamentary Inquiry, 1873. 

2 Xhe second outbreak, 1885, 



GETTING A CHANCE 45 

parations were immediately set on foot, so that the 
expedition should reach the seat of trouble as early 
as possible. Fortunately an experienced officer was 
obtained to command the Force. Colonel Wolseley, 
later Lord Wolseley, was in Canada at this time as 
Adjutant-General of the Militia ; though when his 
name was first suggested for the position, it was 
vetoed on account of his alleged lack of experience. 
The Governor-General, with characteristic British 
officialism, wanted to have a high officer from England 
placed in command of the expedition. But Sir 
George Cartier, Minister of Militia, insisted upon 
Colonel Wolseley's appointment, and he was placed 
in command. This decision was no sooner announced 
than Wolseley received cables from Lieut. Butler 
(afterwards Sir William) and Lieut. Buller (afterwards 
Sir Redvers) asking that they might accompany the 
expedition. 

Accounts could be given of interesting incidents, 
belonging to the present generation, in connection 
with life in Canada, but probably none would be 
more romantic than the strange part the Riel Rebellion 
played in the military careers of each of these officers. 
The Expedition furnished the occasion that mili- 
tary genius longs for, the prospect of active service. 
Thirty years from the date of this experience, one 
of these officers was occupying a seat in the House 
of Lords as the result of an honoured and successful 
career, having also become Commander-in-Chief of 
the British Army. Another paid the penalty so often 



46 LORD STRATHCONA 

exacted in South African service, only to have his 
memory more than vindicated after his remains had 
been consigned to their last resting-place. The last- 
named commander had the greatest army that ever 
left the shores of Great Britain on foreign service, 
and later found an almost insurmountable task am.id 
the mountains surrounding Ladysmith. All three, 
however, were enabled to make a decided step upwards 
in military service by their connection with Louis 
Kiel's rebellion and the Red River expedition. 



IV 

Canadian troops at Fort Garry — Treating with the rebels — The 
Company and the rebellion — New trading conditions — Compe- 
tition with a tinker. 

News from the west caused great anxiety to the 
Canadian public, and they chafed at the delay which 
was necessary before the preparations for an unexpected 
campaign could be completed. The proposal was 
made in the early weeks of the trouble that the forces 
might perhaps be allowed to pass through the United 
States, using the American western railway system, thus 
reaching the objective point much more expeditiously 
than could be done by the long overland route through 
the Canadian forests. This, however, was found to be 
impracticable. The expedition could only go through 
the United States as private citizens, and not as a 
military force ; in which case arms and ammunition 
would have to go as ordinary freight. In the dis- 
cussion of the proposition difhculties were encountered 
that could not be overcome. The ill-feeling engen- 
dered in the United States against Great Britain by 
the memorable Trent affair ^ had not yet subsided. 

1 The " Trent affair " was the occasion of serious diplomatic 
compHcations between the United States and Great Britain. It was 
caused by the government of the Republic arresting Mason and Sliddell, 
two representatives of the confederacy of the Southern States, during 

47 



48 LORD STRATHCONA 

At this time, also, the Fenian organization was active 
in the RepubHc. There had already been two 
filibustering expeditions from the United States to 
Canada in recent years, leaving very aggravating 
memories. It was recognized that the administration 
at Washington could not afford to take the risk of 
offending the Irish, and thus probably losing that 
vote in a Presidential election. And if any further 
objections were needed to the carrying out of such 
a proposal, they were furnished by the circulation of 
the rumour that the Fenian leaders were on their way 
to the west to offer their services to Louis Riel. 

Under these circumstances there was nothing for the 
expedition to do but make its passage entirely through 
Canadian territory. This necessitated a journey of 
nearly four hundred miles to Sault Ste. Marie by the 
Great Lakes, where the expedition had to tranship 
everything to the Canadian side of the river, the only 
navigable passage connecting the Georgian Bay and 
Lake Superior being in United States territory. They 
had to take ship again at the western end of the river 
and sail four hundred miles further west to Fort William. 
Here the difficulties of the expedition really com- 
menced. It was necessary that they should cut their 



the civil war, who were on their way to Europe in a registered 
British steamship. Great Britain denied the right of the United 
States to commit the act in question, and eventually presented an 
ultimatum to the United States Government, demanding the im- 
mediate delivery of the persons on British territory. The bitterness 
growing out of that incident continued for many years. 



THE REBELS IN CONTROL 49 

way, and build a military road, through nearly six 
hundred miles of virgin forest, and over a mountainous 
and well-watered country. This was the task for 
which Colonel Garnet Wolseley had assumed responsi- 
bility. It was a work worthy of the best traditions 
of the British Army. A faint conception of the mag- 
nitude of the undertaking can be realized by a trip 
over either of the two great railway lines now running 
between Wolseley's objective points — Fort William and 
Winnipeg. Whatever the expedition lacked in actual 
military glory was amply compensated for by the 
success attending the stupendous transport arrange- 
ments through such a country. 

While the expedition was cutting its way through 
the Canadian forests, nothing was being left undone 
to secure a peaceable termination of the situation at Fort 
Garry. Riel had formed his government, and was to 
all intents and purposes in possession of the territory. 
Beyond the murder of Scott no overt act had been com- 
mitted, although the few other Enghsh arrivals did not 
know how soon they might meet the same fate. The 
venerable Archbishop of St. Boniface, who was paying 
an official visit to Rome, was cabled to return, in order 
that he might assist in persuading Riel and his followers 
to acknowledge the properly constituted authorities. 
Leading Protestant missionaries had also hurried to 
Fort Garry from the interior, to render assistance 
with the Indians to whom they had been ministering, 
in case they also should make their way to the storm 
centre. Donald A. Smith, who was then in Old 



50 LORD STRATHCONA 

Canada, hurried off by rail to the extremity of the 
United States system, and thence by horses over 
the western prairies of the United States to Fort 
Garry, where he arrived long before the military 
expedition could possibly put in an appearance. 
Meanwhile the clergy of his own Church had held 
Kiel in check. 

Immediately upon the arrival of Donald A. Smith, 
official negotiations were opened with Kiel, and in 
this the Roman Catholic clergy rendered great 
assistance. But before this point had been reached an 
important interview took place between Donald A. 
and Kiel. The former reached the Stone Fort 
at Selkirk late at night. Riel heard of his arrival, 
and immediately went up the river to see him. He 
was told by the attendant that Mr. Smith had retired 
for the night, but he insisted that he must see him. 
While the attendant went to inquire v/hether Mr. 
Smith would see Riel, the latter walked into the 
bedroom unannounced. His reception, however, was 
such that he returned at once, passing out of the 
gates with a crushed appearance, in strong contrast 
to the manner that he had been assuming for several 
weeks in the settlement. The brief interview at the 
Stone Fort opened his eyes. Certain promises were 
made to Riel and his followers, in the course of the 
negotiations, which afterwards had a most disturbing 
effect in Canadian politics, and in regard to which 
Donald A. Smith and the clergy seem to have retained 
most strangely contradictory recollections of the same 



FEARFUL OF THE FACTS 51 

events. At any rate, Riel was persuaded to see 
the error of his ways. He was paid $5,000 (^1,000) 
by Donald A. Smith under confidential instructions 
by Sir John Macdonald, who afterwards reimbursed 
him from the Secret Service Fund placed at the 
disposal of the Ottawa Government by Parliament. 
Riel then left the scene of the rebellion to reside 
in the United States until the promises made to him 
should be fulfilled. 

Lord Strathcona regarded with much uneasiness 
fifteen or twenty years ago the frequently-repeated 
insinuation as to the complicity of the Hudson's Bay 
Company and his own colleagues in the unfortunate 
rebellion. Upon one well-known occasion, during the 
lifetime of the late Archbishop Tache, he visited Winni- 
peg, and endeavoured to get the approval of that great 
leader of the Roman Catholic hierarchy to a statement 
that the officials of the Hudson's Bay Company were 
absolutely free from complicity in the Louis Riel 
episode. But the venerable Archbishop quietly in- 
timated that, if any such statement was made by 
Lord Strathcona, he would produce documents that 
would settle that question definitely for all time, 
upon lines that would create a startling sensation 
throughout Canada. Consequently negotiations came 
to a termination somewhat hurriedly. It is no longer 
a secret that the archives of the Archbishop's Palace 
at St. Boniface contain important documents bearing 
upon this subject, and it is equally well known in 
influential circles that among the papers left by the 



52 LORD STRATHCONA 

late Governor McTavish, of the Hudson's Bay Com- 
pany, most interesting confirmatory information of 
the archiepiscopal documents is available. The late 
Archbishop was credited, however, with stating that 
unless forced to do so he would allow nothing to be 
made public during the lifetime of any of the three 
who had been active participants in this piece of 
Canadian history. The peculiar thoughts that must 
have visited Lord Strathcona when he received Her 
Majesty's Medal for assisting to suppress that re- 
bellion, with which undefined and vague but very 
suggestive rumour credited the officials of the Hudson's 
Bay Company with having had not a little to do, 
and he on account of his official position not being 
altogether free from blame, would surely be worth a 
historian's attention. 

When the expedition arrived at Fort Garry under 
Colonel Wolseley, the rebellion was at an end, but it 
was regarded as advisable for the Force to remain in 
the country during the approaching winter, then fast 
setting in. 

Outside the commissariat accompanying the expedi- 
tion, the main source of the supplies required for the 
troops was the Hudson's Bay Company. In fact up to 
this time there had been no competition with the Com- 
pany throughout that vast territory in the way of 
buying or selling. The Company had been unbridled 
autocrats there for two hundred years. Not only 
had they monopolized the trade, but they had assumed 
authority over human life as well. What was more 



FOUNDATION OF A FORTUNE 53 

natural than to believe that the " sceptre had not 
departed from Israel " ? With the requirements of 
the troops there came a rude awakening as evidence 
of the changed situation, the importance of vv^hich the 
officers of the Company seemed scarcely able to 
comprehend. A young tinker had wandered to Fort 
Garry from the western states, drawn thither by the 
rumours that Canada had assumed the government 
of the territory. He had reached there about the 
time that Thomas Scott arrived, and his escape from 
Scott's fate had hung on little more than a gamble. 
It was a question with Kiel's government whether 
Thomas Scott or John Ashdown should be arrested. 
Ashdown's fate is said to have been decided on the 
chance drawing of two straws of unequal length. 
The tinker escaped, only to find himself very soon 
afterwards in sharp business competition with the 
Hudson's Bay Company. 

Certain heating supplies had been forwarded from 
the east for the troops, but, with the usual military 
want of method, lacking a most necessary attachment. 
This omission necessitated a formal notice appearing 
at headquarters asking for tenders for a supply of 
stove-pipes. The Hudson's Bay Company sent in a 
tender, as did also John Ashdown. The latter quoted 
a much lower figure, but the Company had not much 
trouble in convincing the military authorities that the 
unknown tinker was not in a position to do the work. 
The contract was, therefore, given to the Company, 
but they had no tinsmith in their employ. They 



64 LORD STRATHCONA 

then wanted to engage the services of the practical 
tenderer, but he declined to work for them, when he 
learned that the price at which the contract had been 
secured by them was far in excess of his own modest 
figure. The Company requested the assistance of 
the military to make the " culprit " work. No other 
tinker was known to be within five hundred miles of 
Fort Garry. Colonel Wolseley cut the dispute short 
by cancelling the contract with the Company, and 
giving it to the tinker. 

With the assistance that John Ashdown was able 
to secure from the ranks of the military the contract 
was completed within the stipulated time. This was 
the first intimation that the Hudson's Bay Company 
received that others had equal rights with them in 
the trade of the west. The particular interest at- 
taching to the incident is due to the fact that by this 
contract was laid the foundation of one of the most 
extensive business establishments now in western 
Canada. When the site of Fort Garry became a 
great city, the successful tenderer of that day was 
elected to the most prominent positions in the gift 
of his fellow-citizens. Long before the shadows had 
begun to lengthen in his life, he had accumulated an 
immense fortune by legitimate business, and to his 
credit it may be said, he never used any public position 
that he occupied for the purpose of advancing his 
personal or financial interests. 

In other ways, too, old conditions were giving place 
to new. With the legitimate trader, now admitted 



ROBBING THE HALF-BREEDS 55 

to a hitherto closed territory for the first time, had 
come the restless wandering speculator, whose gambling 
instinct scents opportunities from afar. He never 
comes like a thief in the night, but rollicking and 
daring he soon makes both his presence and his business 
known, with the natural result that the quiet, silent, 
shrewd man of business, following the path blazed 
by the other, reaches the objective point with much 
greater profit. 

Under the terms of an agreement with the Ottawa 
Government, the half-breeds were each entitled to a 
goodly block of land. Their partial rights to pro- 
prietorship in the west were acknowledged in this form. 
In this way, also, all cause for the complaints that had 
been fostered by the rebellion would probably be re- 
moved. As it was not possible to give titles until the 
land could be surveyed, the Government issued what is 
known in the west as Scrip — a form of contract which 
was to be redeemed by the Government for lands after- 
wards. Unfortunately for the half-breeds this Scrip 
was negotiable. The half-breeds were perfectly un- 
conscious as to the value of the Scrip. To many of 
them it was only a nicely printed piece of paper, 
worth, possibly, not much more than any other piece 
of paper. The speculator was on the look-out. To 
him the native is always fair game for exploitation. 
However, but little of the Scrip had reached the 
speculator's possession before a shrewd man of busi- 
ness within the walls of Fort Garry and the Lower 
Fort grasped the possibilities from the possession of 



56 LORD STRATHCONA 

the Government " promise to pay." When it came 
to a competition between the man on the spot, with 
whom the half-breeds were accustomed to do business, 
and the man outside, the latter had small chance. It 
is not surprising, therefore, that the officers of the 
Hudson's Bay Company plunged into the ways of the 
stranger. A well-known resident of Calgary, who was 
one of the chief clerks in the Government Registry 
Office in Manitoba in those early days, is the authority 
for the statement that tens of thousands of acres of these 
lands passed into the hands of very high-placed officials 
of the Company, out of which very large fortunes were 
afterwards realized. The early records of the Registry 
Office bear witness to the manner in which the guileless 
natives were done out of their proprietary rights to 
this Scrip, the greater part of which was handed over 
for no other consideration than a blanket, a pipe, or a 
plug of tobacco. 



V 

Donald A. Smith elected to Parliament — Knowledge of the west — 
Dream of wealth and power — A great leader — ParHamentary 
talent — Buying a public franchise — Election subscriptions — 
Pacific scandal. 

It was fitting that the first Parliamentary constituency 
in the newly acquired west should be named Selkirk, 
in order to perpetuate the memory of that courageous 
voyager who with his intrepid companions settled along 
the Red River in the nineteenth century. The Lower 
Fort, as the settlement around the Stone Fort was 
called, as distinguished from Fort Garry, sometimes 
called the Upper Fort, had been the controlling centre 
of the vast territory ruled by the Hudson's Bay Com- 
pany for two centuries. The old wooden palisades 
had given place to stone walls after the Company 
absorbed its great rival, the North-West Fur Trading 
Company. 

The erection was commenced in 1831 and completed 
in 1839, and was the first lime and stone building 
erected between Lake Superior and the western slopes 
of the Rocky Mountains. Within the five acres sur- 
rounded by these loop-holed stone walls and medireval 
bastions, from which a shot had never been fired, 
more than half a continent had been peacefully 
governed. It was the great meeting-place of the 

57 



58 LORD STRATHCONA 

east, the west and the north. Representatives of 
the Company from the Arctic Circle to the sunny 
slopes of the Pacific, from the north of Hudson Bay 
to country inhabited by the fierce tribes in the more 
western of the United States, from the Lakes to the 
heights of the Rockies, gathered once a year around 
the hospitable board of the Deputy-Governor to 
exchange long-pent-up confidences. 

Here was the flotilla of boats with supplies for the 
interior in exchange for furs brought to this point 
by the trusted servants of the Company. Here, too, 
would take place that distribution of letters, periodicals 
and newspapers that told of the changes taking place 
in the outside world, the coming and going of empires 
and dynasties long after the events had taken place. 
Representatives would settle the policy to be carried 
out for another year in a few hours which it would 
take statesmen months or years to decide under ordinary 
red-tape conditions. The fashions in furs to be 
adopted in Paris would be settled in much the same 
expeditious manner. In those far-off days the curse 
of civiHzation and its greed for gold had not blighted 
their finer susceptibihties. It was the meeting-place 
of the self-sacrificing and faithful, who, while serving 
the Company, were holding an empire for unborn 
generations. Their wants were few, their honesty 
absolute, their loyalty unquestioned. Here, also, 
was an outpost of science. While the Jesuit mission- 
aries were at the same time trying to learn the secrets 
of Nature controlling seismism and atmospheric 
cataclysms in the Philippine Islands and throughout 



ELECTED TO PARLIAMENT 59 

the Indian Ocean, the officials of the Hudson's Bay 
Company were collecting in their archives at the 
mouth of the Red River records of the meteorological 
and agricultural secrets of the " frozen north." To 
realize the extent of these researches one must examine 
the originals, as the writer has had an opportunity of 
doing. Yet a singular difference in the methods 
adopted by these two great inquiring agencies is 
noticeable. The Jesuits lost no time in making their 
discoveries known to the world, while the Hudson's 
Bay Company records largely remained a secret until 
their jurisdiction over the territory ceased. 

The annexation of the Hudson's Bay Territory was 
immediately followed by representation being accorded 
to the new country in the Canadian Parliament. It 
was perfectly natural that the first member to be elected 
in 1 871 should be the Vice-Governor of the Company, 
Donald A. Smith. When he took his seat in the 
House of Commons as a supporter of the Government 
of the day, which was led by Sir John Macdonald, 
he was heartily received by both political parties as 
the representative of the New West. On all sides 
it was recognized that his presence at Ottawa marked 
a distinct advance in the aspirations of the young 
Dominion. The Liberals welcomed Donald A. Smith, 
not in his personal capacity as a supporter of the 
administration, but as the representative of the 
territory, the control of which by the Government 
of Canada they had long advocated. But neither 
side guessed in that typical western figure the 
hidden power which was destined to mould the 



60 LORD STRATHCONA 

history of the country to his own purposes, nor that 
so many of their number, whether wilHng or not, 
should be in his hands as the clay to the potter. 
From this point may be dated a romantic career, 
more interesting in all its details, and more far-reaching 
in its results upon the commercial, social and political 
life of the Dominion of Canada, than has been fur- 
nished by any other individual in the history of the 
British Colonies. 

It has been suggested that a marked similarity exists 
between the lives and characters of Donald A. Smith 
and Cecil Rhodes at this point of their Parliamentary 
careers. A careful survey of the situation, however, 
shows no resemblance whatever in the early stages of the 
public life of these two great Colonials. Cecil Rhodes 
was dreaming of an Empire with no personal advantages 
to himself, Donald A. Smith was dreaming of the 
development of an Empire that might be turned to 
his personal aggrandizement ; and as their dreams 
developed into experience the ultimate ends each had 
in view became still wider apart. Cecil Rhodes was a 
born leader of men in parliamentary government : 
Donald A. Smith was not, but he had no peer as a 
shrewd manipulator of political leaders for his own 
purposes. Cecil Rhodes always stood for the national 
interests, personal considerations being secondary : 
Donald A. Smith's personal interests were paramount. 
The contests of the one were fought out in the 
noontide glare of a public career : the other dis- 
comfited his opponents in the evening shadows of 
secret conferences, and behind carefully-guarded doors. 



KNOWLEDGE OF THE WEST 61 

Donald A. Smith had successfully directed an army 
of officials employed by the Hudson's Bay Company ; 
he had controlled, as in the hollow of his hand, the 
uncivilized Indians throughout a vast territory, and 
had successfully used their labour for the profits of 
his Company. The shrev^dness sharpened by such 
experiences was soon to become useful in a wider field. 
Certain not altogether objectionable characteristics, 
assimilated by contact with the red man, could be 
used advantageously among the whites. He had 
also learned to keep his own counsel. 

Donald A. Smith had an intimate personal acquaint- 
ance with the wonderful possibilities of that goodly 
land lying between Fort Garry and the foot-hills of the 
Rocky Mountains. The faint echoes of information 
that had reached the outer world told but little of the 
actual facts. It is safe to say that no living soul, taking 
any interest whatever in the prospective development 
of that country, had a tithe of the information that 
the Canadian Governor of the Hudson's Bay Company 
possessed. He was equally familiar with the fertility 
of the great west of the United States. For many 
years, on his journeyings to eastern Canada, he had 
traversed the prairies to the south of the Company's 
jurisdiction. He knew that the northern area was a 
continuation of the same belt of fertility that was the 
basis of the accumulating wealth of Chicago and 
other western cities. Years before, he had heard the 
muffled thunder of countless herds of buffalo from the 
United States, forced by the advancing tide of western 
settlement, wend their way up the valley of the Red 



62 LORD STRATHCONA 

River to the Hudson's Bay Territory. He had seen 
them increase and multiply in the area under his 
control. He knew that as they had prospered in 
the western states, and even to a greater extent in 
British North America, so could be measured the 
respective fertility of the two countries. He was well 
aware that where buffalo thrive, cattle can feed by 
the million, so that probably in this country wheat 
would yield crops such as the world had never seen. 
He was sufficiently reflective to know that the territory 
over which he had held jurisdiction for so many years 
was favoured by Nature with two hours' longer sun- 
shine, during the wheat-maturing season, than any 
other wheat-growing area in the world. The value 
of each one of these considerations had not escaped 
his shrewd calculations. 

Donald A. Smith had seen railway enterprises in the 
western states grow to enormous corporations in a 
decade or two. Native shrewdness and his peculiar 
knowledge suggested that what others had done in the 
neighbouring republic he himself might accomplish in 
Canada. A railway had already been projected and 
partially constructed towards the Canadian border from 
Minneapolis, but it had not realized its promoters' ex- 
pectations, and the managers were discouraged. To 
have that line completed, with some assistance from 
personal friends, was now his object. Before this, 
however, the idea of securing the control of a charter 
for the construction of a Pacific Railway through 
Canada had become a definite aim. 

The means to accomplish this became the controlling 



INTRIGUING FOR A CHARTER 63 

influence of every action of Donald A. Smith after he 
had taken his seat in the House of Commons. But while 
he was dreaming of a continental charter, a far-sighted 
and enterprising countryman of his own was acting. 
The general elections of 1872 were about to take 
place. Sir Hugh Allan was then head of the great 
steamship line that bore his name. As a young man 
he had come to Canada long before steam was thought 
of on the Atlantic. From small beginnings he had 
expanded his business until his fleet had become a 
possession that Canada was proud of. Industry and 
integrity had marked his life in every particular, and 
success had crowned his efforts. Within an inner 
circle it was rumoured that he had previous confidential 
experience in effecting arrangements with Canadian 
Governments for mail subsidies for his steamship 
Hne. At any rate he selected an opportune time to 
enter into secret negotiations with the First Minister 
for an arrangement to construct the Canadian Pacific 
Railway. In these conferences Sir Hugh was accom- 
panied by the late Mr. J. J. C. Abbott as his confi- 
dential legal adviser. This was subsequently proved 
by the production of the correspondence between 
the contracting parties in the ensuing Parliamentary 
inquiry. Mr. Abbott appeared again on the scene 
seven years later with other parties in a similar 
confidential capacity. 

Sir John Macdonald, the Premier, was, as has already 
been intimated, about to make an appeal to the elec- 
torate for a renewal of confidence in the Government 
which had been in oflice since Confederation. He was of 



64 LORD STRATHCONA 

Scotch descent, his parents having arrived in Canada 
early in the nineteenth century. He was brought up 
in the humbler walks of life, and after going to the 
village school, was apprenticed as a clerk to a lawyer. 
A wealthy merchant at Kingston took a great fancy 
to the bright young lad, who under his patronage 
was introduced into politics ; from that period this 
promising prot^g^ devoted his time untiringly to 
public affairs. A natural leader of men, he quickly 
came to the front. Eventually, out-distancing all 
competitors, he became the leader of his party and 
the Premier of Canada. In personal appearance and 
manner he had a strong resemblance to Lord Beacons- 
field. His ruling passion was power — not office for 
the mere sake of office, but office for the sake of the 
power it conferred. To attain power he risked every- 
thing, with the inevitable result that the record 
of aspirations and deeds solely in the interest of 
his country, will not altogether clear his reputation 
of blemishes. For a long time he was strongly 
opposed to the Confederation of the provinces, but 
finally joined in its advocacy, and effected a coalition 
of the leaders of both political parties to carry it 
through. Many of the prominent Liberals who 
joined forces with him for the purpose of seeing that 
great project carried, and by whose assistance he be- 
came the first Prime Minister under Confederation, 
separated themselves from him as soon as the Union 
became an accomplished fact. 

The House of Commons possessed a highly satis- 
factory standard of public life at this time. There 



PUBLIC LIFE CLEAN 65 

were intellectual giants in the Canadian Parliament 
in those early days of Confederation. The political 
stream had not been sluggish in any of the provinces 
for many years, and, as is always the case in times of 
political disturbance, strong characters had come into 
the political arena. 

Better far than the evidence of intellectual power 
was the fact that up to this time scarcely a reputation 
had been associated with a minor political scandal, 
and certainly no hint of personal corruption had been 
suggested. The cankerworm, which was so soon to 
eat its way into the body politic, had not as yet made 
its appearance. No one but a madman would have 
prophesied that ere ten years had passed, the whole 
standard of public ethics would have changed. The 
heat of battle in provincial politics was beginning to 
be felt at Ottawa. The Federal Opposition (the 
Liberals) had already captured the most important 
of the provincial legislatures, and they had grown 
in strength and influence in the Federal Parliament 
until they had become a serious menace to Sir John 
Macdonald's retention of office. 

Sir Hugh Allan knew the Tory Leader's intense love 
of power, and he also knew that he looked forward with 
some misgivings to the pending appeal to the electors. 
He therefore selected this occasion as auspicious to 
open negotiations for an arrangement about the much 
coveted Pacific Railway charter, with the avowed 
object of carrying out the terms of the agreement 
by which British Columbia had entered the Con- 
federation — the construction of a railway across the 



66 LORD STRATHCONA 

continent within ten years. Sir Hugh Allan promised 
Sir John Macdonald a subscription of $100,000 
(_^20,ooo) to the party funds, if the Government would 
give him and his friends the charter for the con- 
struction of the line. The amount that was held 
out as a bait to the First Minister was looked upon 
as a large sum in those days. Sir Hugh pressed for 
the introduction of the necessary legislation during 
the last session of Parliament, before the elections. 
Sir John at first considered this impossible, as it 
would give the Liberals another subject upon which 
to appeal to the country against him. He wanted 
Sir Hugh to accept his assurance that, if successful 
at the elections, he would enter into a satisfactory 
arrangement then, introducing the necessary legisla- 
tion at the first session of the new Parliament. Sir 
Hugh practically replied, " It is now, or nothing." 
Both the negotiating parties were Scotch, possessing 
a full measure of the acumen of the race. Sir John 
was a politician, and certainly in a matter of this kind 
a pledge was as good as a bond, providing the elections 
should be satisfactory. Sir Hugh was a business man 
accustomed to have everv contract in black and white — 
he did not care to part with his money without holding 
security in the usual form. 

After much hesitation Sir John Macdonald agreed 
to the details of a definite arrangement by legislation 
— necessarily including (i) the incorporation of the 
Canadian Pacific Railway Company, and (2) the ap- 
proval of Parliament to a contract with the Company 



OUTCOME OF SELLING A CHARTER 67 

for the construction and maintenance of the Hne. 
These Bills were accordingly carried through Parliament 
in 1872, immediately prior to the general elections, 
after a strenuous fight against the proposals by the 
Opposition. Donald A. Smith was one of the charter 
members of the Company. He was asked to join the 
Board of Directors because it was a convenience to Sir 
Hugh Allan, and probably also to insure his support to 
the measure in the House. In how far Sir Hugh 
took the charter members of the Company into his 
confidence about the promised subscription to the 
election funds remains a mystery. Every precaution 
was taken by Sir John Macdonald and Sir George 
Cartier on the one hand, and Sir Hugh on the other, 
to prevent their mutual confidences becoming known. 
Nothing probably would ever have been revealed, 
had not the Opposition developed unexpected strength 
in the campaign, naturally increasing the anxiety about 
the possible result, so that Sir John Macdonald and 
Sir George Cartier, with a complete absence of their 
usual shrewdness, both by letters and public tele- 
grams, made several personal appeals to Sir Hugh for 
further assistance. One of Sir John's telegrams said : 
" Send another ten thousand. It is the last time of 
asking." The amounts paid by Sir Hugh totalled 
$350,000 (^70,000). Sir John carried the country, 
but the denouement that followed prove that in an 
endeavour to secure an extension of power, this great 
Canadian statesman had paid an awful price, leaving 
a stain on his memory which time can never efface. 



VI 

Reverting to party lines — George Brown's break with the coahtion 
— Parliament of talents — Interest in Parliament — The early days 
in Ottawa — Discovery of the Pacific scandal — Investigation by 
Parliament. 

The session of Parliament following the general elec- 
tions of 1872 was historic in many ways. Party lines, 
which had been largely obliterated by the action of the 
leaders on both sides in Upper and Lower Canada in 
order to bring about Confederation, were again clearly 
defined. In the preceding session a number of mem- 
bers, who, in pre-Confederation days, had been associ- 
ated with the Liberal party, supported the Government 
of Sir John Macdonald. This temporary truce had thus 
proved more advantageous to the leader of the Govern- 
ment than to the Hon. George Brown, the leader of 
the Liberal party before Confederation. Mr. Brown 
was the first Canadian statesmen to propose or ad- 
vocate a Confederation or union of the scattered 
provinces. He is more entitled to be called " The 
Father of Confederation " than any of those who 
afterwards took part in the conferences on this 
question. " Whatsoever a man soweth that shall he 
also reap " has not been exemphfied in the popular 

estimation of George Brown on the question of 

68 



PARTY LINES DEFINED 69 

Confederation, owing to a careless study of the 
complicated events of that period. To others has 
been largely given the credit that really belongs to 
him. After the Act of Union became law George 
Brown considered that he was no longer called upon 
to co-operate with Sir John Macdonald in the admin- 
istration of the affairs of the country. Their private 
lives, personal habits and views of government were 
too different to long permit of intimate association. 
Brown resumed his old position as a political opponent 
of Sir John Macdonald's Government, but several of 
his influential supporters accepted portfolios in the 
new coahtion Cabinet. Brown was defeated in the 
elections of 1867 and Alexander Mackenzie became 
leader of the Liberal party. When the Parliament 
of 1872 met, the Liberals who joined forces with Sir 
John in 1867, and who had not in the meantime been 
shelved by appointments to lieut. -governorships or to 
the bench, were as staunch supporters of the Prime 
Minister as his old and trusted followers. 

Nevertheless, the political atmosphere had cleared. 
Party lines were again distinct. The necessity of 
party government in the Colonies is as clearly estab- 
lished as in the mother-country. There probably 
will be occasions in the history of government in 
every democratic country when political coalitions 
become a national necessity, but if such combinations 
are forced upon Parliament to too great an extent 
the tendency is more likely to be by concessions to a 
minority in the ruling body than government by 



70 LORD STRATHCONA 

majority — administration by intrigue and cabal rather 
than by clear-cut issues in the open. This was the 
view taken by George Brown after the crisis that led 
to Confederation had past. It is not surprising, 
therefore, that in the Canadian Parliament of 1872 
the Independents could be counted on the fingers 
of one hand. The most notable of these were Richard 
J. Cartwright, the promising son of an unbending 
Tory, who was steadily drifting towards the Liberal 
party, and Donald A. Smith, who claimed to be an 
Independent, but whose sympathies were with the 
Government of the day. There were also one or two 
from the maritime provinces, where party lines in 
Dominion politics were not so clearly defined as in 
Upper and Lower Canada. 

Upon the Treasury Benches there was a galaxy of 
stars — the greatest aggregation of political talent that 
any Canadian Parliament has ever seen, with the ex- 
ception of the Cabinet with which Sir Wilfrid Laurier 
met Parliament a quarter of a century later. The leader 
of the Opposition was supported by followers of equal 
strength. Master minds from all the provinces were 
gathered at Ottawa, and the two parties faced each 
other in grim earnest. In the previous Parliament 
the Opposition had fought a good fight, though handi- 
capped by the fact that half a dozen former leading 
associates sat on the right of the Speaker. 

This was the scene that the writer, then scarcely 
out of his teens, surveyed from the public gallery. 
What attraction Parliament could have for a lad I must 



PERSONAL INTEREST IN POLITICS 71 

allow some one else to explain. And yet for me it had 
a strange fascination. Residing in Ottawa, then a back- 
woods town, where were neither theatres nor music- 
halls, and picture-palaces had not then been conceived, 
all my spare evenings were spent in listening to the 
debates. During the sessions the galleries of the 
Senate and Commons alike were always well filled by 
the general public. The accommodation was ample, 
and admission not difficult. During the six sessions 
which had been held at Ottawa friendly door-keepers 
had always reserved " a special seat for the lad," 
and, more frequently than not, failed to ask for my 
ticket. I seemed to have as much right in the gallery 
as members to a seat on the floor of the House. There 
was no senator or member whose name I did not know, 
or in whom I did not take a personal interest. 

In my boyhood's years the Hill upon which the 
Parliament Buildings now stand had been the play- 
ground of my school. I remember the horror with 
which we discovered hundreds of men at work for the 
first time digging up the ground for the foundations. 
I had stood within a few feet of the Prince of Wales 
when he laid the corner-stone in i860, and about 
which, in reply to His late Majesty's inquiries, I had 
the honour of telling him forty-five years later. I had 
watched with deep interest the magnificent pile grow 
to completion, so, at last, when Parliament met, I 
wanted to be the first in the gallery and the last to 
leave it. 

I had been a witness to the hearty welcome by an 



72 LORD STRATHCONA 

unanimous House, when, as the representative of the 
New West, Donald A. Smith had been introduced to 
the Speaker ; and again, now more accustomed to 
his surroundings — a famihar and striking figure wearing 
a grey top-hat only out of his possession in order to 
conform to the rules of the House. It is no doubt a 
wise provision of Providence that we are not allowed 
to look into the future. If we could, perhaps, many- 
would not care to venture on life's perilous way. 
Could I have lifted the veil, as I unconsciously turned 
my attention to Donald A. Smith, I would have read 
a strange romance. He was beyond middle life, I 
was beginning. He was a millionaire, I was starting 
to earn my own living. Within eight years I was 
drifting into a prominent part of public life in strong 
opposition to the ruling ambition of his life ; again, 
five years later, a candidate for the House of Commons 
in a constituency into which a liberal contribution, 
to make sure of my defeat, was sent by his syndicate ; 
as organizer of the Liberal party for many years 
fighting political forces that were strengthened by 
huge bulwarks of money from his syndicate, throughout 
the vast territory extending from the foot of the 
Rocky Mountains to the banks of the Ottawa river ; 
and twenty-seven years after this historic session of 
1872 I would have seen myself sitting in his library 
in Grosvenor Square, becoming personally acquainted 
for the first time. Both were occupying positions of 
responsibility in the Canadian Government service, 
and we calmly discussed the possible solution of a 



KEEPING HIS OWN COUNSEL 73 

problem that Cabinets had vainly tried for twenty 
years to solve, whereby the stream of British and 
Continental emigration might be diverted to the 
western prairies of the Dominion. 

In how far Donald A. Smith had any personal 
knowledge about the secret agreement between Sir 
Hugh Allan and the Government, no conclusive 
evidence is available. He was one of the charter 
members and also on the Board of Directors. There 
is little doubt but that he found his place on the 
Board more nominal than otherwise. The original 
negotiations were between Sir Hugh and the Govern- 
ment, the Company was Sir Hugh's, and he was 
naturally the controlling factor. It is not unlikely 
that Donald A. Smith had ambitious designs beyond 
Sir Hugh Allan's charter. If he had, he certainly 
was keeping his own counsel. His journeyings to 
Fort Garry had given him an insight into what 
was being done in the way of railway construction 
in the western states. He knew what could be done 
on the great prairies of Canada. No member of the 
Government of the day, at any rate, had the slightest 
suspicion of his want of loyalty to Sir Hugh Allan. 
Donald A. Smith had been elected again as a sup- 
porter of Sir John Macdonald's Government. When 
Parliament, in the ordinary course of events, was 
called together, there was no public indication other 
than that the session would take the usual course. 
But the information had already reached a limited 
circle outside the friends of the contracting parties, 



74 LORD STRATHCONA 

that an arrangement had been made between Sir 
Hugh Allan and Sir John Macdonald, whereby the 
head of the Allan Steamship Company, in considera- 
tion of the charter that had been granted to his 
company for the construction of the Canadian Pacific 
Railway, had paid large sums of money directly into 
the hands of Sir John Macdonald during the recent 
election campaign. 

These payments were known in certain banking 
circles, so that the information eventually filtered 
through to parties who were strongly opposed to 
Sir Hugh Allan's Pacific Railway aspirations, and who 
were determined to bring about the nullification of 
the contract. To do so, they were bent upon getting 
the proof that money had actually passed between the 
high contracting parties, as well as any communica- 
tions that might have passed between the Premier 
and Sir Hugh Allan ; and any other documents in the 
possession of either party that were likely to furnish 
evidence in the case should be secured at all costs. 

It was a foregone conclusion that the correspondence, 
if any, could only be of the most confidential char- 
acter, and would scarcely be elsewhere than in the 
personal possession of the most trusted secretaries. 
The private secretary of Sir John Macdonald was 
known to be unimpeachable, so that there was no 
use trying there. Not so, however, were the confi- 
dential secretaries of the head of the great steamship 
line. One of them was discovered who was willing 
to betray his master, if the monetary consideration 



POLITICAL EXPLOSION IMMINENT 75 

was made satisfactory. All that was required was 
promptly forthcoming, and copies of all the corre- 
spondence, as well as many of the most important 
original letters and telegrams between members of 
the Government and Sir Hugh were produced. A 
cursory glance at these papers very properly led to 
the conclusion that, with the publication of these 
documents, the Government would be utterly doomed 
in the House of Commons so recently elected, and 
also that the exposure would render it impossible for 
Sir Hugh Allan to participate in any arrangement 
whatever, for the construction of the transcontinental 
railway. Meanwhile, Parliament was preparing to 
meet, neither political party conscious in the least 
degree of the mine that was being prepared for an 
extraordinary political explosion. 

If the matter culminated as might be expected, 
there should be a chance for others to be in a deal 
with the Government for the charter. It was, how- 
ever, absolutely necessary that no suspicion should 
attach to those who were advancing the money which 
was required to secure the evidence. Nothing is 
better understood than that to be party to a plot to 
secure possession of private and confidential letters, 
without the knowledge and consent of both the sender 
and the receiver, carries an everlasting stigma upon 
all concerned. However, it must be understood 
that evidence of a corrupt arrangement between Sir 
John Macdonald and Sir Hugh Allan once becoming 
public knowledge, it would be taken notice of by 



76 LORD STRATHCONA 

Parliament, in view of its public character. It was 
admitted that no agreement of such a pernicious 
character could be allowed to go unnoticed by the 
highest tribunal in the land. The confidential secre- 
tary of Sir Hugh Allan, and those associated with him, 
considered it wiser to deliver everything to a leading 
member of the Liberal party, Hon. Mr. Huntingdon, 
who, it was said, cheerfully agreed to assume all 
responsibility for having possession of them. In this 
way it was hoped that the ro.eans taken to secure 
possession of the incriminating documents was not 
likely ever to become known to the public. The 
true source of the treachery of Sir Hugh Allan's con- 
fidants remained a mystery for many years. There is 
only one person living now who can give personal 
information about the matter. 

The publication of the correspondence, showing 
the terms upon which the railway charter had been 
granted, and the confidential correspondence acknow- 
ledging that money had been paid to the leader of 
the Tory party by Sir Hugh Allan, created a tremend- 
ous sensation in the country. It was the one topic of 
conversation everywhere. The main facts could not 
be denied. The House of Commons referred the 
matter to a Royal Commission,^ the membership of 
which was selected by the House. Both sides were 
represented on this tribunal. As the inquiry pro- 
ceeded, the main point that the First Minister had 
agreed to give a charter for the construction of the 
1 Appendix, 2. 



PACIFIC RAILWAY SCANDAL 77 

Pacific Railway to Sir Hugh Allan in consideration of 
the payment of certain moneys to an election fund 
was clear beyond question. All the links that were 
required to establish the case were supplied by the 
oral evidence of Sir Hugh Allan, who was faced in the 
witness-box with his own handwriting. 

The Government manifested a degree of courage 
worthy of a better cause. When the first shock of 
the exposure had subsided, the Tory party largely 
ranged itself in support of its leader. He threw the 
glamour of his great personality over his followers, 
inasmuch as he had long been to them an object of 
pride and admiration. The action of the Premier 
was defended on the ground of the advantages likely 
to accrue to the country by the early construction of 
the railway, which could be so easily secured with the 
head of the Allan Steamship Line as the chief financial 
promoter. 

It was very clear that no money had reached Sir 
John Macdonald for his personal use. All the money 
that he had received from Sir Hugh had been expended 
in order to advance the political fortunes of the party, 
and this to the average Tory was only one remove 
from the money having been actually used in promoting 
the interests of the country. Patriotism with them 
had but one meaning — partyism. To be faithful to 
the Tory leader was the highest type of a patriot. 
In addition, it was well known that a cardinal trait 
of Sir John Macdonald's character was that he never 
deserted, a friend under any circumstances whatever. 



78 LORD STRATHCONA 

This characteristic, on his part, naturally gave rise 
to corresponding expectations from his friends, and 
furnished occasion for the circulation of a hon mot 
from him, " that he had little use for a follower who 
only supported him when he was right, since even his 
opponents would vote with him then ; but that he 
reserved all his admiration for those who would stand 
by him when he was wrong." If he could weather 
this storm every devoted follower knew that his 
reward in some substantial form would come soon. 
If. on the other hand, the party should be wrecked, 
he might manage to return again, when the faithful 
would not be forgotten. 



VII 

The situation in Parliament — Partyism and patriotism — Deputation 
to Lord Dufferin — Donald A. Smith's position — A political crisis 
in sight — Donald A, against his party — Resignation of the 
Government. 

The political parties in the House of Commons 
were not unfairly divided, although, of course, the 
Government had a working majority. The Opposition 
was in stronger force than in the previous Parliament. 
But in those early days of Confederation, party lines 
were not so clearly defined as they became in later 
years. Had this incident occurred ten years later, it 
might scarcely have caused a ripple on the political 
sea. It even seemed that the Liberals were to make 
no progress towards the Treasury Benches by this 
exposure. Apparently the supporters of the Govern- 
ment remained loyal to their chief. Outside of 
Parliament, however, it was confidently expected that 
the Governor-General, Lord Dufferin, would not 
permit such extraordinary conduct on the part of his 
Ministers to pass without notice. A memorial was 
presented to His Excellency, signed by all the Liberals 
in the Senate and the House of Commons, requesting 
him to cause an official inquiry to be made into the 
transactions between the Premier and Sir Hugh Allan, 

79 



80 LORD STRATHCONA 

as set forth by the proceedings of a Royal Com- 
mission. The memorial contained a statement of the 
salient points of the evidence. The Governor-General 
decided, before taking any official part in the contro- 
versy, to await the decision of the House of Commons 
on a motion of wsLnt of confidence in his Ministers. 

In the meantime, amid the most strenuous protests 

from the Liberals, before a vote v^as reached on the 

motion of w^ant of confidence, Lord Dufferin decided 

to prorogue Parliament. This v^as done in order that 

further evidence could be taken by the Commission. 

But the promise was publicly given that Parliament 

would meet again within a stated period. When the 

Houses reassembled the guilt of the First Minister in 

trafficking in the sale of a charter to construct the 

Pacific Railway had been proved beyond question. 

It was equally clear that he had received from Sir 

Hugh Allan a large sum of money towards the party 

campaign funds in consideration of the agreement. 

There were one or two minor desertions from the 

ranks of the Government supporters, but the majority 

remained faithful. It was evident that nothing short 

of an unexpected trend of events in the Commons, 

or drastic action on the part of the Governor-General, 

would bring about the defeat of the Government. 

But the unexpected was about to happen. During 
these months when the country was seething with 
excitement, there was no suggestion or hint that 
Donald A., as the Resident Governor of the Hudson's 
Bay Company was familiarly called, was not in sym- 
pathy with his leader, or that he was looking at the 



ANXIETY ABOUT A VOTE 81 

question with any sinister object in view. It was 
only suggested long afterwards that he had not shown 
surprise when the fatal papers were produced. This 
is not a matter of astonishment, because he was a 
member of Sir Hugh Allan's Board of Directors. 
As the debate on the motion of want of confidence in 
the Government continued from day to day his seat 
was seldom vacant. It has been said that the Premier 
became anxious about Donald A. Smith standing by 
him in the crisis, and that he endeavoured to get him 
into line by instructions through the Hudson's Bay 
Company in London. And that with this object in 
view he had cabled the late Sir John Rose, ex-Finance 
Minister of Canada, to assist him by enlisting the 
co-operation of the Directors of the Hudson's Bay 
Company. But Sir John Macdonald was too shrewd 
a student of human nature to attempt any form of 
coercion with one possessing the force of character 
so evident in Donald A. Smith. Of course Sir John 
Macdonald was not aware at this time that Donald 
A. Smith had secured a controlling interest in the 
Company, and that the Board knew full well whose 
good-will to seek. The inquiry occasionally floated 
through political circles : " What is Donald A. going to 
do ? " Sir John had two or three interviews with 
him. What took place at these conferences after- 
wards led to bitter words between Donald A. and the 
First Minister. Sir John said that Donald A. con- 
sented to support the Government, but this Donald A. 
denied in toto. 
One member of the House only was in Donald A. 

F 



82 LORD STRATHCONA 

Smith's confidence, and he was not in close touch 
with the leaders of either party. Only two or three 
in the whole country had the faintest conception of 
the vital interest he had in the confidential documents 
that had been produced, and which were hanging like 
a mill-stone around the necks of the doomed Ministers. 
But no one outside this confidential circle had any 
idea that Donald A. Smith had aspirations of his 
own, or that he had decided upon a course that, if 
successful, would have an important bearing on the 
future political history of the Dominion. It is not 
out of place to suggest that at this time the thought 
of getting possession himself of the charter for the 
construction of the Pacific Railway was taking definite 
shape in his mind. Here was laid the permanent 
foundation of his future. It was evident that unless 
an unlooked-for catastrophe occurred, the Government 
would win. The impending change, however, was 
already there. But the House was serenely uncon- 
scious of the approaching disaster to the Government 
which was so soon to be revealed. 

The large galleries were crowded to suffocation on 
that clear autumn night, of November 5, 1873. There 
was not even standing room in the space usually 
allotted to the public. There was a strange lack 
of order or control. The Government was willing 
enough, if they were to win, that all the citizens of 
Ottawa and visitors to the capital should witness 
their triumph. If they were to lose it mattered little 
to them who saw it. On both sides of the Speaker's 
Chair the uninvited public pressed a way, as also at 



A MOMENTOUS OCCASION 83 

the four corner entrances of the Chamber. They 
ranged against the walls behind the members' seats, 
some even venturing to sit on the arms of members' 
chairs. Neither members nor officials noted this in- 
vasion into the sacred precincts of the Chamber, or 
if they noticed, cared to interfere. 

Apparently the last word had been spoken, and the 
clear voice of the Speaker, slightly tremulous, was 
heard : " Are the Members ready for the ques- 
tion ? " Almost before the echoes of his voice died 
away, Donald A. Smith rose amid strained and 
intense stillness. A figure sombrely attractive at the 
moment, but lacking the air of professional dignity 
evident in many by whom he was surrounded ; a 
face upon which lights and shadows seemed to flit, 
well covered with flowing sandy whiskers, eyebrows 
uncommonly bushy, the head crowned with golden- 
brown hair, all presenting an unusually well-preserved 
appearance for one who had passed his fiftieth mile- 
stone, although bearing but little resemblance to 
the dignified octogenarian with whom the present 
generation became so well acquainted thirty years 
later. His hearers, perhaps, knew better than he 
the fates that were dependent upon his views. If 
he stood by the Government the crisis might be post- 
poned. To denounce them meant the crushing out 
of the last hope that Sir John Macdonald might have 
of weathering the storm. No wonder there was not 
a vacant chair in the House so soon as the word was 
passed out that Donald A. was on his feet. He began 
in a somewhat hesitating and doubtful manner. He 



84 LORD STRATHCONA 

was not then, or ever, an attractive platform speaker, 
but belonged to the class that is sympathetically 
listened to. There was always about his public 
speaking an earnestness that overshadowed mere 
rhetoric. As he proceeded every eye in the House 
was turned towards him, and every ear strained. 
He expressed his regret that it had been found neces- 
sary to establish a case against the Government by 
the aid of the confidential documents which had 
undoubtedly been purloined from the possession of 
Sir Hugh Allan. He thought that the sanctity of 
private correspondence should never have been 
violated. He believed that nothing could justify a 
third party in receiving and retaining private and 
confidential correspondence, without the written 
consent of the sender and receiver. 

The Tories waited for no more, radiant smiles 
illumined their faces, they shook hands with one 
another, and the Opposition was correspondingly 
silent. The Government benches broke into loud 
and enthusiastic applause. The Tory Whip excitedly 
whispered to those behind him to repair to the 
restaurant of the House. He was quickly followed 
by a score or more of Members, including three 
members of the Government, hurling defiant sneers 
at the front Opposition Benches as they passed. At 
the restaurant they filled their glasses " To the health 
of Donald A." For a few minutes the faint echoes 
of an enthusiastic crowd engaged in opening champagne 
bottles, mingled with strains of " Rule, Britannia ! " 
and " God Save the Queen " reached the Chamber. 



WEIGHED IN THE BALANCE 85 

The Canadian House of Commons has a weakness 
for public exhibitions of excessive loyalty in times of 
political excitement. A party vote is taken to signify 
that " Britons never shall be slaves," and a victory 
on an important question of public policy finds ex- 
pression in the National Anthem. The connection 
between a prayer that God may save the King and the 
question at issue between the political parties is not 
always very clear to an impartial observer. But for 
the moment a strain of anxiety may be removed, so 
some purpose is served and the way made smoother 
by a timely exuberance of this nature. Like charity, 
these outbursts of loyalty offer a cloak for many 
offences. While Tories found interest in these pro- 
ceedings in the restaurant, Donald A. Smith continued 
his speech. His tone suddenly changed. It ceased 
to be mildly condemnatory of the means by which the 
present situation had become acute. There was an 
indication of harshness, and then he reached a phrase 
beginning with " But." It was evident that he was 
preparing to convince himself. The matter that 
followed set the Liberals cheering. Suddenly the 
noise from the " loyalists " outside ceased. A 
messenger had reached the restaurant with the 
alarming intelligence : " Donald A. has gone over to 
the Grits," a favourite term of derision then applied 
to the Liberals. There was a hurried return to the 
Chamber, many glasses of champagne being left un- 
tasted. The dismay of the returning party, which 
had left so joyously a few minutes previously, covered 
them as with a garment. 



86 LORD STRATHCONA 

With the manner of one thoroughly in earnest, but 
whose special gift was not oratory, Donald A. Smith 
proceeded to moralize on the heinous offence of 
bartering a public charter for political profit. The 
Canadian Parliament should be kept as pure and clean 
as the Imperial Parliament. Private interests should 
never be allowed a place in the legislation of the 
Dominion. With much more of like import he was 
repeating exactly what the giants of the Liberal 
party, MacKenzie, Blake, Cartwright, Dorion, Holton, 
Huntingdon, Jones and a host of others, had been 
saying for days. With his strong native accent, his 
earnestness and sincerity, every word fell like a sledge 
hammer on the hopes of the administration. 

He was followed by an ardent Government sup- 
porter, in a vain hope that the tide might be stemmed, 
but there was a feeling in the air that all talk now 
was useless. When the Premier moved the adjourn- 
ment of the House in the early hours of the morning, 
no vote having been taken, it was well known that 
before sunset of another day, the resignation of the 
First Ministry under Confederation would be in the 
hands of the Governor-General. 

The unbridled imagination of contributors to 
British periodicals picturing a wild tumult in the 
House of Commons, with Sir John Macdonald crossing 
the floor of the House and striking Donald A. Smith, 
is without the slightest foundation. The scene in 
the late hours of that historical day was worthy of the 
highest traditions of the British Parliament. As the 
Speaker repeated the usual formula, "This House 



A POLITICAL CATASTROPHE 87 

stands adjourned until to-morrow at three o'clock," 
there was an unusual tremor in his voice. The 
Prime Minister rose quietly and retired by the exit be- 
hind the Speaker's Chair. The writer stood beside the 
Speaker's Chair, and is among the few now living who 
were present on that memorable occasion. Although 
Sir John's face was flushed with the realization that 
the hour of his defeat had come he gave no evidence 
of his humiliation. In all his career he never acted 
more nobly than when, with apparent calmness, he 
accepted the unexpected verdict, not even challenging 
a division of the House. The rhetorical thunders of 
a week had suddenly given place to a great calm. A 
pall of silence hung over the Chamber. The leaders 
of the Opposition sat quietly at their desks. Here 
and there little knots of Members conversed in under- 
tones, the larger number gathering around the desk 
occupied by Donald A. Smith and David Glass, the 
two Government supporters who had " bolted." The 
terse demand of the former for an incorruptible Parlia- 
ment, and his denunciation of a corrupt Ministry, had 
precipitated the political catastrophe. History had 
been made since the Members gathered together in 
that evening session. An almost invincible political 
leader was going out of office under a terrible cloud. 
The importance of the hour made it full of solemnity. 
That there were pent-up feelings of exultation on one 
side, and seething resentment on the other, there 
could be no question. But the statesmen of that day 
were warriors, not hoodlums. 

Both sides withdrew from the House for the night 



88 LORD STRATHCONA 

amid a more bitter feeling than Canadian politics had 
ever known, and yet with a singular suppression of 
outward excitement. Donald A. Smith's speech had 
undoubtedly hastened the downfall of the pride of the 
Tory party — for so was Sir John Macdonald regarded. 
The fall carried with it a cloud upon the reputation 
of the great chief, which, though Canadian Toryism of 
to-day would gladly forget, time cannot altogether 
remove. The Tories of 'seventy-three, however, 
would have had abundant cause for consolation had 
they foreseen that this was not the only Government 
that Donald A. Smith would succeed in wrecking. 
His recent political associates were bitterly accusing 
him of want of loyalty to his chief in the hour of his 
greatest need. They could not understand that any 
justification was possible for withdrawing confidence 
in a political leader. To do so was in their opinion 
the basest treachery. According to the political 
ethics of the Canadian Parliament, when a leader is 
wrong is the time that party disloyalty is least per- 
missible. No loophole is left for the exercise of 
either conscience or principles. But the rank and 
file of the Tory party might have been less harsh in 
their judgment of Donald A. Smith at this particular 
time had they known that his new political associates 
would later have even more cause for dissatisfaction 
with his transient support. The subject of their 
scorn, however, went his way silently, as he had long 
since learned to do. He was carving out a path for 
himself. 



VIII 

New Government in power — Donald A.'s railway purposes — Guarding 
the nation's heritage — Alexander Mackenzie — Lord Dufferin's 
speech — Tory hatred of Donald A. — Intriguing for a charter — 
Meeting with a patriot. 

A NEW Government came into power, and another 
general election was held. Donald A. Smith came 
back to the House of Commons as one of the most 
influential supporters of Alexander Mackenzie's 
administration. During the campaign in Selkirk 
Donald A. had quite a new experience, extraordinary 
also in view of the fact that only a few years previously 
he was the autocratic ruler of that part of the world. 
Settlers from the east had poured into Winnipeg and 
Selkirk since his election two years previously. Among 
them were many warm admirers of the deposed chief- 
tain. Sir John Macdonald. They bitterly resented 
Donald A.'s desertion of their idol. At his first 
public meeting they attended in force, abundantly 
supplied with eggs of an uncertain age. By the time 
they got through with their work, none of the occu- 
pants of the platform were recognizable. These forces 
were led by a gallant colonel now residing at East- 
bourne. But more extraordinary than all was the 
fact that Donald A. had as associate member for the 



90 LORD STRATHCONA 

West the ex-rebel Louis Riel, who had been elected 
by his compatriots. Louis Riel came to Ottawa, 
quietly entered the House, took the oath, signed the 
Roll of the House of Commons and disappeared before 
he was generally recognized. A warrant was issued 
for his arrest. He was assisted by friends to escape to 
the United States. Had he been granted an amnesty 
as his friends claimed he was promised, and been 
allowed to take his seat, the odds are that the horrors 
of the second North-west Rebellion would never 
have occurred, and a great deal of racial bitterness in 
future Canadian public life would have been avoided. 
Alexander Mackenzie, the newly elected First 
Minister, as his name indicates, was Scotch. Little 
more than a quarter of a century had elapsed since 
he, as a young immigrant, worked at his trade as a 
stonemason on the fortifications then being erected 
at the head of the St. Lawrence River. Taking every 
advantage of the rapid changes incident to the develop- 
ment of the country, he was quickly able to improve 
his circumstances and associations. Natural ability, 
force of character and strict integrity soon pushed him 
into prominence in the young country, resulting in 
his election to the old Parliament of Upper and Lower 
Canada a few years before Confederation became an 
accompHshed fact. At the first session after the 
union of the provinces he was elected leader of the 
Liberal party. This was the man whom the charter- 
hunters hoped to influence. 

The Pacific Railway Scheme was in the forefront 



THE PRIME MINISTER'S ANXIETY 91 

when Alexander Mackenzie took office. It dominated 
the public life of the day. The recent scandal accentu- 
ated the situation. Because of the exposure growing 
out of Sir Hugh Allan's efforts to get possession of the 
charter for the construction of the railway, the Prime 
Minister had only too good reason to believe that 
there were others just as anxious as Sir Hugh to have 
an interest in it. He, therefore, took charge of the 
Department of Public Works himself, as a notice to 
wire-pullers that their efforts to direct the policy of 
the department would be useless. British Columbia 
had entered Confederation under an arrangement 
that the railway should be completed within ten 
years. The province was clamouring for some sign 
of the promise being carried out, but the outlook was 
far from encouraging. The new Government was 
evidently determined not to be forced into the 
declaration of a policy without careful consideration. 
For a while the view was expressed in influential circles 
outside that there was no way out but for the work to 
be handed over to a company. Speeches of Ministers 
failed to give a definite indication of the policy likely 
to be adopted, except that an exhaustive survey of 
the routes would be vigorously prosecuted. The 
country, in fact, impatiently waited an announcement 
of the Government policy. 

Finally the First Minister intimated the date when 
the intentions of the Cabinet would be made public. 
It was to be on the occasion of the annual statement 
about the progress of the surveys. The importance of 



92 LORD STRATHCONA 

the hour was recognized by a full attendance of 
Members and the crowded public galleries. The 
Prime Minister was very practical, and with great 
earnestness he declared that the policy of his Govern- 
ment was to construct and maintain the railway as a 
Government enterprise, and to proceed with the 
completion of the work as quickly as the resources of 
the country would allow. In a moment the Members 
grasped the full meaning of the announcement, and 
loud and hearty applause rose from both sides of the 
House. The country received the declaration of the 
Government policy with enthusiasm. The national 
pride was aroused with the definite prospect of the great 
national undertaking. British Columbia, meanwhile, 
thought that the term " as quickly as the resources of the 
country would allow " indicated delay, and appealed 
to the Colonial Office to force the Government to 
carry out the exacting terms of the arrangement by 
which it entered the Confederation. The province 
talked about seceding. 

It was decided that the Governor-General, Lord 
Dufferin, should visit British Columbia in a diplo- 
matic capacity in order to pacify that distant Province. 
He found the public men there very demonstrative in 
their determination to have the full pound of flesh. 
" The terms and nothing but the terms " was the 
cry on all sides. For the moment he forgot his 
position as the constitutional head of the country, 
and was stampeded into views inconsistent with the 
policy of the Government. The province wanted 



AN UNPREPARED SPEECH 93 

the railway at once, whether the finances of the country 
would stand the strain or not. Upon his return to 
Ottawa Lord Dufferin was met at the railway station 
and presented with an address of welcome by the 
mayor and council. In the enthusiasm of the moment 
he made a speech which was practically a reflection 
on the Government policy, and this, also, in the 
presence of members of the Cabinet who had come 
to bid him welcome after his long journey. The 
consternation of the moment overshadowed every- 
thing else, and the opponents of the Government 
were jubilant. " The Cabinet repudiated by the 
Governor-General " went through Ottawa like a 
flash of lightning. Lord Dufferin looked as if he 
would like to bite his tongue off as he departed for 
Rideau Hall. 

The only verbatim report of Lord Dufferin's speech 
was in the hands of Mr. George Holland, of the Daily 
Citizen, the ablest shorthand reporter in Ottawa. 
In the course of an hour or so, after Mr. Holland had 
transcribed his notes, it was represented to him that 
it might be regarded as discourteous by the Governor- 
General if he was not shown a copy of the speech 
before publication. Mr. Holland accordingly went 
to Government House, had an audience with His 
Excellency, and gave him a copy of the speech. In 
the course of conversation Lord Dufferin asked Mr. 
Holland what system of shorthand he used, and if 
he had his notes in his pocket, as he (Lord Dufferin) 
could read shorthand fairly well. Mr. Holland had 



94 LORD STRATHCONA 

good reason to be proud of his stenographic char- 
acters, so frankly handed his notes for Lord Dufferin's 
examination. After compHmenting him on the clear- 
ness of his style, which His Excellency said he could 
almost read, Lord Dufferin calmly pocketed both 
transcript and note-book, and gravely told the obliging 
journalist that the matter was too important to be 
hastily settled, but he invited the speechless reporter 
to lunch on the following day, when between them 
they would put the speech in order for publication. 
The journalist pleaded for his note-book, he was 
willing to wait all night for His Excellency's con- 
venience. But his lordship was obdurate, he said 
he was not accustomed to exert himself so soon after 
a long journey. The speech was never published. 
The Governor-General and Mr. Holland met the 
next day at lunch and fixed up a report for publica- 
tion, and all summaries of an objectionable character 
were unhesitatingly repudiated. Lord Dufferin had 
scored, and ever afterwards entertained the most 
friendly feelings for the journalist whom he had 
cheated out of his copy. 

The " incident " of the Governor-General's speech, 
if not forgotten, at least ceased to engage attention, 
and the policy of the Government remained un- 
changed. If the financial resources of the country 
would justify the immediate construction of the 
railway, it would be done ; but, at any rate, the work 
would not be proceeded with more expeditiously until 
the completion of the surveys. British Columbia, 



THE DREAM TAKING SHAPE 95 

through its representatives at Ottawa, raged. The 
Government was conciliatory but firm. The dis- 
turbed state of the poHtical atmosphere on the question, 
however, furnished hope for possible changes in the 
Government policy. Donald A. Smith began to 
follow out well-laid plans to direct a change in the 
decision of the First Minister, and bring to fruition 
the dream of his heart. Now he was not alone. The 
more influential of his personal and financial associates 
were taken into his confidence. It was not revealed 
until long after that these associates had firmly deter- 
mined to support any government that would comply 
with their wishes on the question of a charter for the 
construction of the Pacific Railway ; and, also, that 
they would do their utmost to wreck every government 
refusing to give them all they wanted. 

Donald A. Smith was recognized, as he publicly 
declared himself, as being in cordial sympathy with 
the Government. In many questions of public 
policy he was taken into the confidence of members of 
the Cabinet. At that time none of the Liberals 
questioned his single-mindedness in deserting his late 
political leader. How could that be questioned when 
he condemned the action of his own associates on the 
Board of Directors of Sir Hugh's company ? But the 
Tories, whether they believed it or not, did not give 
him so much credit for purity of motive. His former 
political allies openly charged him with sinister 
objects. In the House, both politically and socially, 
he had everything in common with the administration. 



96 LORD STRATHCONA 

In point of fact, there was no other place for him. 
The Tories were more bitter against him for their 
humihating downfall than toward the actual purloiner 
of Sir Hugh Allan's letters. The threatenings that Saul 
breathed out against the disciples at Jerusalem were 
mild in comparison to the revengeful spirit with which 
the Tories were animated. Nothing but unrelenting 
vengeance from them was to be his portion. These 
mutterings were heard from the chief down to the 
least important in the ranks of the party. Such 
personal bitterness had never been shown in Canadian 
politics, nor has it ever been so signally expressed 
since. Tories embraced every opportunity of publicly 
deriding him about his speech on the sanctity of con- 
fidential correspondence. When he rose to address 
the Speaker it was a signal for a general exodus from 
the Tory side of the House. Nothing was left undone 
to express their personal contempt. And, at the same 
time, they were circulating rumours of a most offensive 
character about his connection with the conspiracy to 
get possession of Sir Hugh Allan's letters. The 
apparent indifference which he exhibited to all that 
his former political allies said or did was more than 
interesting. He had too many more important 
matters in hand to permit a waste of time or thought 
over threatened Tory vengeance. Donald A. Smith 
believed that sufficient unto the day was the evil 
thereof. Like the well-known quadruped of nursery 
fame, " Brer Rabbit, he lay low." 

Looking back upon the events of that time one 



UNDETERRED BY CIRCUMSTANCES 97 

cannot but be impressed with the caution and shrewd- 
ness with which Donald A. Smith now entered upon a 
carefully prepared campaign with the party in power. 
The Government was strong both in the House and 
the country. Everywhere the demand was clear that 
the country should construct and own the transcon- 
tinental railway. It was regarded as impolitic and un- 
wise from every standpoint that a corporation should 
possess that franchise. It would have been a brave 
act on the part of any man to have given utterance to 
any other view. Yet, with all these forces arrayed 
against him, Donald A. Smith pursued the even tenor 
of his way, with but one thought in his mind. His 
natural cleverness had not been blunted by the life 
he had lived for thirty years. The accepted axiom, 
that as " iron sharpeneth iron so a man sharpeneth 
the countenance of his friend," was abundantly ex- 
emplified with him. If courageously pursuing an 
object, regardless of all obstacles, could bring success, 
he was bound to succeed in some form or another. 
In accepting confidences and giving none, while 
appearing to be most unreserved in his manner, he 
had no peer in British North America. And he was 
playing for tremendous stakes. 

Notwithstanding the First Minister's declaration of 
policy, Donald A. Smith lost no time in presenting to 
Alexander Mackenzie his views about the advisability 
of the railway being constructed by a company. But 
the fine old Scotchman who then directed the policy 
of the administration soon disposed of the specious 



98 LORD STRATHCONA 

arguments that were presented to him. " I will 
leave the Pacific Railway as a heritage to my adopted 
country," was the First Minister's final word, uttered 
with that rich Gaelic accent that he never lost. In 
the depths of Donald A.'s heart he must have wished for 
strength to throw personal and selfish ends to the 
winds that he, also, might join the magnificent patriot 
whose native honesty no personal or political interests 
could ever destroy. It was a character he was bound 
to admire, though reluctant to follow. Later in life 
Alexander Mackenzie stigmatized the proposal to 
hand over the great enterprise to a company as the 
basest treachery to Canada, and declared that none 
but traitors could be guilty of it. 

The Premier having proved obdurate, it was 
evidently not considered wise to press the matter 
just then. For this reason the tactics of the charter- 
hunters changed. Strenuous efforts were made to 
bring the Liberal Members to see the question in the 
desired light. Donald A. Smith's residence, " The 
Cottage," became the scene wherein was played a 
scarcely-perceptible intrigue. It was carried out so 
carefully that only the faintest suspicion of wire- 
pulling was ever created, and this was almost immedi- 
ately dispelled. Two brothers in the House at that 
time, Lewis and Walter Ross, were almost the only 
ones who looked upon Donald A.'s actions with 
vague and undefined fears. The former told the 
writer in later years that he could not understand how 
they were all so wanting in judgment at that time, 



WORKING THE MEMBERS 99 

and gave the reasons why he and his brother did not 
like the look of things. Their fears were attributed to 
their intense loyalty to the Prime Minister, " clannish- 
ness," as it was termed, good-naturedly, by some of 
their fellow-members. 

With a lavish hand, hitherto unknown in political 
life in Canada, Donald A. dispensed hospitality to all 
the Liberal Members. No Tory would grace his 
table, or even exchange ordinary courtesies with 
" the traitor." The loss of office was too recent, 
and the part that Donald A. had played on that 
occasion still rankled. To the Tories Donald A. 
was an outcast, beyond the pale of political redemp- 
tion. But the enthusiasm with which he was treated 
by the Liberals amply compensated for the male- 
dictions of his former allies. The open and avowed 
hatred of the other side drew the Liberals all the 
closer to him. 



IX 

Donald A. and the American railway — The Dutch bondholders — 
Negotiating with the Official Receiver — Borrowing from the 
bank — Issuing stock to themselves — In a tight place — Fortune 
suddenly realized. 

In the meantime events were transpiring in the 
western United States fraught with stupendous 
possibilities to Donald A. Smith. As the Liberal 
Government at Ottawa seemed wedded to its railway- 
policy the advisability of making an effort to get 
possession of a railway line that could be extended 
from St. Paul and Minneapolis to Manitoba was 
considered. Donald A. was well acquainted with the 
details of this from his frequent journeyings to Fort 
Garry through St. Paul. 

The history of this line is not without interest. 
In March, 1857, the Congress of the United States 
granted to Minnesota, then only a territory, but now 
one of the most populous States of the Union, a vast 
area of public lands to be used to encourage the 
building of railroads. During the same month the 
territorial legislature chartered the Minnesota and 
Pacific Railway Company. To this corporation was 
conveyed much of the land granted by Congress, 

subsequently supplemented by further grants. These 

100 



A RAILWAY DEAL 101 

consisted of all odd numbered sections (640 acres each) 
within ten miles on both sides of the railway. In 
1862 the rights and franchise passed to a new company 
called the St. Paul and Pacific Railway. Companies 
succeeded each other in rapid succession. Five 
separate issues of bonds were unloaded upon Dutch 
capitalists. The last company in possession of the 
franchise ceased to pay any interest in 1872. Then 
the United States District Court stepped in and 
appointed Jesse P. Farley, of Dubuque, Iowa, Official 
Receiver to the Company, and authority was secured 
to complete the line to a certain point up the valley 
of the Red River and thus earn a clear title to all 
the available land grant. This Farley succeeded in 
doing. 

The railroad ran along the Red River towards 
Manitoba. Farley thus far honestly administered 
the trust committed to his care. With the opening 
up of a new locality to immigrants the revenue in- 
creased, and the surplus was used in improving the 
road-bed, and purchasing rolling stock. 

With the three years of the Parliamentary term of 
the Mackenzie Government that had passed, the 
prospects of a syndicate getting control of the Pacific 
Railway in Canada faded into mist. Donald A. Smith 
was convinced of the advisability of making a deal 
with the Receiver of the Minnesota railway so as to 
continue it to the borders of Manitoba, and then 
secure legislation at Ottawa to connect the American 
line at Pembina with Winnipeg. If this were done 



102 LORD STRATHCONA 

Winnipeg at least would have railway connection with 
Eastern Canada within two or three years. 

The railroad of which Farley was Receiver, how- 
ever, was burdened with five bond indebtednesses, 
all held in Holland. The dates of issue were: 1862, 
$1,200,000; 1864, $3,000,000; 1865, $2,800,000; 
1868, $6,000,000; 1871, $15,000,000. The last had 
been sold in Holland by the banking-house of Lippman, 
Rosenthal & Co., of Amsterdam, to trusting Dutch- 
men. The aggregate liability to the bondholders 
was $28,000,000 or ^5,600,000. It was thought 
possible, under certain conditions, that Farley might 
find occasion to point out to the Dutch investors how 
hopeless the outlook was for them ever to get their 
money out of the enterprise. 

Several years earlier J. J. Hill, a Scotch Canadian, 
had settled in Minnesota. For six years previous to 
this date he had been local agent for Farley's railway. 
He became acquainted with Donald A. Smith as 
he passed up and down in his journeyings to Fort 
Garry. They were fellow-countrymen, mutual con- 
fidences were natural, and they became fast friends. 
In the middle 'seventies Donald A. Smith sent for 
" Jim " Hill to come to " The Cottage " at Ottawa. A 
plan was settled upon and Hill returned to Minneapolis 
to sound Farley about selling out the whole concern 
to a syndicate of four — Donald A. Smith, George 
Stephen, of Montreal, J. j. Hill and Norman Kittson, 
the latter being a Canadian who ran steamers up the 
Red River from the terminus of Farley's railway. 



A CONVENIENT RECEIVER 103 

Farley subsequently alleged that the profits were to 
be divided into fifths ; his share in the meantime, 
since he was custodian in trust for the Dutch bond- 
holders, was to be held by one of the other four. 
Farley regarded it as his clear duty not to give the 
case away by allowing the bondholders to have too 
rosy visions as to the ultimate return of the large 
amounts they had loaned. When the bonds were 
offered, their security had appeared unquestionable. 
Much later events proved that their estimation of the 
value of their bonds was anything but exaggerated. 
But when that information reached them it was too 
late. 

It was the intention of the syndicate that J. J. Hill 
should go to Holland to buy up the bonds at their 
depressed value. Farley, however, wanted all these 
negotiations left in his own hands. As the result of 
his correspondence with Amsterdam, the Dutch bond- 
holders sent a representative to Minneapolis to see 
what was going to be done about their money. The 
encouragement that he received from Farley convinced 
him, after a controversy extending over several weeks, 
that $6,000,000 or ^f 1,200,000 for the ^5,600,000 that 
had been invested, was all that the properties of the 
Company could ever realize. 

In the back parlour of a little hotel in Minneapolis 
an agreement was outlined between the Dutch repre- 
sentative on the one hand, and ]. J. Hill, Donald 
A. Smith, George Stephen and Norman Kittson on 
the other, and put into shape by a young man from 



104 LORD STRATHCONA 

Hamilton, Ontario, named Rennie, duly transferring 
all the bonds on the line for the sum of $6,000,000. 
The parties afterwards signed a joint note for the 
amount of the purchase, including an additional 
$780,000 expenditure necessary for contingencies. 
The cash was advanced by the Canadian Bank, of which 
Donald A. Smith and George Stephen were directors, 
and paid to the Dutchmen at Montreal, where a more 
elaborate legal document was signed between the 
parties. Farley, because he was a court trustee, 
while acting as Receiver, could not be an actual party 
to the agreement. No writing could be given to him 
guaranteeing him a fifth share in the enterprise, but 
the fact that one of the four held a right to two-fifths 
of the profits was part of the basis of Farley's con- 
tention in later years that he was entitled to a fifth 
in the enterprise for the part that he had taken in 
persuading the Dutchmen to sell their securities. 

The syndicate became incorporated as the St. Paul, 
Minneapolis and Manitoba Railway, and issued paid-up 
capital to themselves for $15,000,000 (^3,000,000),^ no 
trace of any consideration for which ever reached the 
coffers of the Company. Smith, Hill and Kittson 
were allotted 28,823 shares, being about one-fifth 
each, and Stephen's share was 19,216 shares, one- 
half of which it was subsequently alleged was to be 
held in trust for some person not mentioned in the 
agreement. This division of interests subsequently 
became the subject of extended and costly litigation, 
and is fully reported in File No. 257 of the Supreme 

^ Appendix, 3. 



MILLIONS OF PROFIT 105 

Court of the United States, 1893. But this is another 
story. 

The Company as now constructed issued bonds for 
$16,000,000 (^3,200,000),^ and unsuccessful efforts 
were made to sell them in New York and London. 
Rumours had reached these financial centres as to the 
" deal," and it was feared that the disastrous fate 
which had overtaken the Dutchmen might be repeated. 
In the meantime the consequences of withdrawing 
^1,200,000 from the Canadian bank had a depressing 
effect on the stock, which steadily declined from over 
200 to 126. The one thing that might ease the 
money-market, and allow the bonds to be dealt with, 
was an assurance that the railway would be extended to 
Winnipeg. Donald A. Smith, therefore, introduced 
a Bill in the House of Commons, known as the Pembina 
Branch Railway Bill, to authorize the construction 
of the necessary connection to Winnipeg through 
Canadian territory, a distance of sixty miles. The 
Bill passed the House of Commons, and there seemed no 
reasonable cause why it should not find an easy passage 
through the Senate. With this prospect the immense 
possibilities of the railway were only too evident, and a 
profitable market was found for the bonds. 

Donald A. Smith had succeeded. At last his star was 
within reach. The indebtedness of the syndicate to 
the bank, then amounting with interest to $7,000,000 
(^1,400,000) was paid, leaving about $8,500,000 
(£1,700,000) profit, or $1,700,000 (£340,000) to each 
share of one-fifth of the enormous speculation. 

^ Appendix, 3. 



106 LORD STRATHCONA 

By this successful coup Donald A. Smith and his 
associates immediately came into possession of 565 
miles of a completed and fully equipped railway, with 
2,580,660 acres of the finest wheat-land in the world 
running alongside of the line. Upon this property 
the Company had not expended a penny of their own 
money — the stock issued to themselves was fully 
paid up — and the money necessary to manipulate the 
deal had been borrowed from the Canadian bank. 
At that time directors of banks in Canada had a 
perfectly legal right to borrow from funds entrusted 
to their charge. Owing, however, to this power 
having been greatly abused, the authority of directors 
became a subject of Parliamentary discussion in 
later years, resulting in amendments to the Banking 
Act which practically prevents such acts as the one 
under consideration being repeated at the present day. 
On the face of the transaction there was no risk whatever 
of the bank funds, and there was a great opportunity for 
the interested parties coming out of the speculation 
with enormous profits. The situation of the railway 
in the west had been presented to the Dutch bond- 
holders in such a manner that they were willing 
enough to sell. The children of the Exodus had been 
commanded to spoil the Egyptians, and therefore 
why should not this Company spoil the Dutchmen? 
How thoroughly they were spoiled subsequent events 
in the United States Courts proved. It was worthy 
of the Israelites ! 



X 

Tory insults to Donald A. — Intrigues for Pacific charter — Senate 
taking revenge — Failure of intrigues — The Government ob- 
durate — Historical scene in House of Commons. 

While Donald A. Smith and his associates were 

reaping a colossal fortune from the success of their 

United States railway speculation, matters were 

taking a far from satisfactory course at Ottawa. The 

Pembina Branch Railway Bill was rejected by the 

Senate. It was well known that its passage was 

greatly desired by Donald A. Smith as the one thing 

necessary to make his railway deal a huge success. 

The Tories were in a majority in the Senate. The 

Second Chamber of the Canadian Parliament is an 

integral part of the Constitution, designed, like the 

House of Lords in Great Britain, to protect the public 

against ill-advised or hasty legislation in the popular 

Chamber. The Senators are expected to review Bills 

from the Lower House with judicial calm and free 

from party bias. As individuals, members of the 

Senate, however, are only human. There were many 

there who had not forgotten the " traitor " who had 

hastened the downfall of Sir John A. Macdonald's 

Government in 1873. Some of them burned with a 

desire to carry the Pembina Branch Bill back to the 

House of Commons with a pair of tongs. Within the 

107 



108 LORD STRATHCONA 

Red Chamber the teachings of the Old Testament, 
" an eye for an eye," are not unknown to have been 
religiously observed. The Tory Senators contented 
themselves, however, with refusing to pass the measure 
for strong Imperial reasons — the inadvisability of per- 
mitting the trade of the Dominion to be carried over 
the United States railway system, while the Govern- 
ment of Canada was hurrying the construction of 
railway connection through Canadian territory. 

The Parliament was almost at an end, the last 
session of its existence having been reached. For five 
long years Donald A. Smith had wined and dined the 
Liberal Members. At the end of that time, although 
some were less opposed to the idea of a Company 
constructing the Pacific Railway, the Prime Minister 
was immovable, and a still greater obstacle existed in 
the fact that both Parliament and the country had 
enthusiastically approved of the Government policy 
that the railway should be the property of the country. 
Some thirty milHon dollars (^6,000,000) expenditure 
had been authorized by Parliament towards the con- 
struction of the Pacific Hne. Contracts had been 
awarded for the heavy portions of the route located 
between the Great Lakes and Winnipeg, the Premier 
asserting that this would make it impossible that the 
great highway should ever pass into the hands of a 
company. To outsiders it seemed that those who 
were anxious to get control of the Canadian Pacific 
Railway were now completely barred from progressing 
with their scheme. 



A PARLIAMENTARY MOB 109 

But Donald A. Smith and his co-workers were not 
discouraged. They had far from exhausted the 
resources at their disposal. The exact course to be 
taken in the future to bring the Government to time 
had, perhaps, not been decided upon. Then an 
incident occurred on the floor of Parliament that, 
apparently, left Donald A. Smith no other place in 
public life than in the ranks of the Liberal party. 

The hour for the Prorogation had arrived. The 
attendance of Members was larger than usual. All 
around there were evidences of early flitting. The 
House was patiently waiting for Black Rod. Donald 
A. Smith entered the Chamber somewhat hastily 
and had scarcely reached his seat before he began to 
address the Speaker. In his hand was a carefully 
folded newspaper. He complained about an uncalled- 
for and totally unjustifiable reflection upon his per- 
sonal honour in a speech made by the leader of the 
Opposition, Sir John Macdonald, the day before, a 
report of which appeared in the paper which he pro- 
posed to read to the House. In a moment the Chamber 
was in a turmoil. Above the general uproar and shouts 
of " Order, order," could be heard the terms — 
" Treacherous," " Liar," " Cowardly," " Yankee rail- 
way," " Dutch Bondholders," and much else that 
was unparliamentary. The distant booming of the 
guns announced the arrival of Lord Dufferin at the 
Senate Chamber, there to await the presence of his 
" faithful Commons," but His Excellency's " faith- 
ful Commons " were otherwise engaged. Sir John 



110 LORD STRATHCONA 

Macdonald. Dr. Tupper, Mackenzie Bowell, John 
Rochester, Dr. Sproule and a host of others were 
shouting themselves hoarse and gesticulating wildly 
at the object of their scorn. Donald A. Smith stood 
calmly watching the turmoil and waiting his chance to 
continue his remarks. In the five years that had 
elapsed since he denounced his political chief, grey 
hairs had appeared. He had less of the western 
appearance, but his figure was as impressive and 
fearless as ever. Now he seemed the least disturbed 
member of all that crowd. The noise of the row 
reached the lobbies, and a few who had ventured 
inside the doors, among whom was the writer, were 
forced nearer the Speaker's Chair by the crush behind. 
Dr. Tupper (now Sir Charles, the veteran octogenarian) 
finally got the floor. The uproar increased in in- 
tensity, as both sides now took part, the Liberal 
Benches shouting at Tupper. It was a sight to make 
sluggish blood tingle ! 

The loud raps of Black Rod at the door resounded 
throughout the Chamber. The Speaker tried in vain 
to be heard, but the contestants were in for a battle- 
royal, determined to fight it out. It was now not 
merely between Donald A. on the one side, and Dr. 
Tupper on the other, but each side of the House 
wanted the defence of its representative to be recorded 
in Hansard. The Speaker resumed his seat. Black 
Rod impatiently waited outside. Hansard ^ gives some 
vague idea of the scene, but much that was unparJia- 

^ Appendix, 4. 



WASHING DIRTY LINEN 111 

mentary was unheard or omitted. The washing of 
dirty linen could not be stopped. Private and con- 
fidential conversations between ertswhile intimate 
friends, never intended for the public, were announced 
from the housetops. Dr. Tupper shouted, " You 
asked me to get you made a Privy Councillor," and the 
House was startled into surprised silence for a moment. 
The general situation proved that if their inner 
thoughts are exposed great men are very human — 
only boys grown up. If those taking part in this 
niHee had been other than Members of Parliament 
their reputations would have gone for ever, for the 
record is irrevocable. 

The Serjeant-at-Arms tried to notify the Speaker 
that a messenger from His Excellency requested ad- 
mission, but his effort was in vain. Black Rod knocked 
again and again, but he might as well have knocked 
at the portals of a tomb. Finally the Speaker motioned 
towards the door and Black Rod entered. He bowed 
profusely as usual, and his lips moved, but no sound 
reached the " faithful Commons." The Speaker 
stood and evidently made an announcement, which 
was not heard beyond his immediate vicinity. The 
speakers, addressing one another, fought on with un- 
abated fury. With all due dignity the Speaker stepped 
down from the dais, the Serjeant-at-Arms shouldered 
the Mace, and preceded by Black Rod, they slowly 
entered the lobby leading to the Senate. Immediately 
following came the Members of the Government, among 
whom was a tall straight figure, with a handsome 



112 LORD STRATHCONA 

youthful face, carrying with becoming dignity the 
lately-acquired honours of a portfolio in the Govern- 
ment, who was destined, ere a quarter of a century 
could roll by, to occupy the greatest place in the public 
eye ever reached by a colonial statesman. After the 
Cabinet followed as excited a mob as ever disgraced 
the floor of a Parliamentary chamber. With a de- 
termination to be as near the storm centre as possible, 
the writer rushed towards Donald A. Smith. As the 
crowd from both sides of the House met in the passage, 
angry Tories, with arms uplifted as if to strike, pushed 
and hustled towards the object of their hatred. There 
were several others with myself, who, for obvious 
reasons, had no right to be there, but messengers and 
doorkeepers had lost their heads as well as the people's 
representatives. The crowd swayed to and fro, and 
the writer found himself beside Donald A. Smith just 
as Tory members reached out to strike his grey top 
hat, one of whom was my own uncle. In the rush of 
friends to avert the blow I was thrown against my 
relative, for whom I had not voted at the last election, 
and whose regard for me was even less friendly than 
his opposition to Donald A. It was a shuffling and 
slightly dishevelled crowd that finally reached the 
Senate Chamber, but once inside those dignified 
precincts the frenzied excitement quickly subsided. 
Thirty years afterwards, sitting in Lord Lytton's 
library at Knebworth, when Lord Strathcona held the 
tenancy, we compared our recollections of the events 
of that hour. He then said that he looked upon that 
experience as one of the most exciting in his life. 



A WITCH OF ENDOR VIEW 113 

It is necessary to read the Parliamentary record to 
thoroughly understand the bitterness in the political 
life of the Dominion at that time, and to appreciate 
the force of the cross-currents that swept around 
Donald A. Smith at that period. 

It would have both interested and perplexed Donald 
A. Smith if at this juncture he could have lifted the 
veil and looked into the future, to see himself within 
six months secretly taking part in the rejoicings of his 
political enemies. To see their leader and every one 
of his followers within two years the unconscious 
instruments of his plans, and the hearty supporters of 
the personal project that had become the dream of 
his life, would have been pleasant ; to see one who 
was then hurling insults at him from the back benches 
the object of a treacherous conspiracy on the part of 
his own selected colleagues, when a word from him 
would prevent his deposition from the position of 
Prime Minister, would have entirely satisfied his 
longing for revenge. And if he could have seen the 
noisiest of that unruly Parliamentary mob a more 
subservient instrument and ostentatious admirer for 
twenty years than all the Canadian politicians who 
were destined to fall down and worship him, it would 
have formed a fitting climax to make the vision 
complete. Perhaps more extraordinary and less satis- 
factory to contemplate would be the sight of his own 
hand turned against those who were now giving him 
their sympathy, as they had given him their unsolicited 
support upon the question that was the cause of the 
disturbance then taking place. 



XI 

Undiscovered intrigue — Before the elections — Elections postponed — 
Effect of chance conversation — The tempter again — Donald A.'s 
election — Corrupt practices — Loan to the Judge. 

Thus closed the first Parliament controlled by the 
Liberal party since the inauguration of Confederation. 
It was not until long afterwards that the Tories dis- 
covered the intrigue which had been quietly developing 
during the five years that had elapsed since they were 
driven from office, by a syndicate desirous of securing 
a charter for the construction of the Canadian Pacific 
Railway. Tory leaders were not even aware that the 
wire-pulling had proved abortive, and that because 
of the failure to turn Alexander Mackenzie from his 
patriotic determination to leave the great transconti- 
nental highway as a heritage to the Canadian people, 
tremendous weapons were to be offered to them, 
which, if discreetly used, would materially assist in 
returning them to power again. Equally unsuspicious 
were they that " the arch-traitor," as they continually 
called Donald A. Smith, was seriously debating in his 
own mind whether he should not sever his connection 
with the Liberal party. But the closing scene in the 
House of Commons made such an announcement 
impossible. It was years before this information 
filtered through to the general public. All that was 

114 



WASTING THEIR ENERGIES 115 

known was that the charter-hunters, whose sole 
object was to secure possession of what the Govern- 
ment of that day declared to be the nation's heritage, 
had found themselves confronted by an administration 
which had remained serenely unmoved in spite of every 
influence they could exercise. With this Ministry in 
power their efforts were wasted. In order to secure 
a franchise, which must in the long run make its 
possessors wealthy at the public expense, it was evident 
that new tactics must be tried. They measured the 
possibilities in the other political camp, and decided 
that nothing should be left undone that would bring 
about the defeat of the Mackenzie Government. 
Their influence was widespread, their plan of campaign 
well laid. No gamblers ever played for higher stakes. 
The game was to play with loaded dice, and the 
players' identity remain hidden and secret. 

The general election campaign of 1878 offered 
unusual opportunities to discredit the Liberal admini- 
stration. For two or three years the revenue had 
not equalled the expenditure. This necessitated the 
strictest economy in the public finances. Canadian 
politicians, as a class, invariably stand pledged to 
economy when appealing to the electorate. Yet it is 
very doubtful whether the electorate in any country 
really approve of too economical an administration. 
Since Confederation, no Canadian Government has 
been defeated at the polls because they had the 
courage to sanction liberal expenditures ; while more 
than one Government has been forced out of office 



116 LORD STRATHCONA 

on account of its studied economy with public moneys. 
By a certain class of politicians, Alexander Mackenzie's 
attitude in regard to the finances was considered the 
greatest offence against the public morals that the 
administration had been guilty of. 

The Government had also refused to adopt the 
policy of Protection that was energetically demanded 
in the interest of the manufacturers. A period of 
severe financial depression was being experienced in 
commercial circles, and the Tories strongly advocated 
an increase in the tariff as a panacea for all public ills. 

The Government had made preparations for a 
short campaign. In the latter part of April, 1878, the 
writs were all ready to issue, so that the polling would 
take place in June. A Member of the Government, Sir 
Richard Cartwright, happened to mention this to a 
former Member of the Cabinet, Hon. Edward Blake, 
the day that the decision had been reached, at a chance 
meeting at a railway junction. Mr. Blake had with- 
drawn from the Cabinet for personal reasons, but 
he immediately pressed on the Premier the advisability 
of postponing the elections until the autumn, in the 
hope that a good harvest might prove to the general 
advantage of the Government. Notwithstanding the 
persistent advocacy of the earlier date by his colleagues 
in the Cabinet (and they were practically unanimous 
on the question), the First Minister decided to take 

the advice of his old colleague and postpone the date 
of the elections. An election in June would have 
been practically a walk-over for the Government. 
This was the opinion of both sides for long afterwards. 



CASH FOR THE ELECTIONS 117 

Time was what the Tory leaders wanted. Sir John 
Macdonald still led the Tory forces, and he nevei 
showed more ability in directing a popular campaign 
than on this occasion. He seized this opportunity 
to carry on an educational propaganda, and also 
promised in terms which left no room for misunder- 
standing, unbounded prosperity through an increased 
tariff. He needed time in which to make the party's 
financial arrangements. His organization centres were 
bankrupt. He had educated his party in the Pacific 
scandal campaign with Sir Hugh Allan's money to see 
the necessity of having a reasonable amount for 
" contingencies " in election contests. The trite 
saying " Once bitten, twice shy " had no terrors for 
the Tory leader of that day. In the most ostentatious 
manner the manufacturers were called together, and 
subscriptions solicited from them to assist in carrying 
through a policy of Protection, which would probably 
mean a great deal to them. They were reminded 
" Thou shalt not muzzle the ox when he treadeth out 
the corn." It needed no special application to drive 
the scriptural injunction home. The policy of the 
Tory leaders was to make these people rich. But 
unhappily at a meeting from which fifty thousand 
dollars (^10,000) was expected less than five thousand 
(_^iooo) was actually realized. 

At this moment came most welcome offers of 
tangible assistance, Mr. Abbott was Sir Hugh Allan's 
confidential adviser when the subscription to the 
Tory election funds was made seven years previously, 
and he now knew the pit-falls to be avoided. It was 



118 LORD STRATHCONA 

intimated to an influential member of the party, who 
held no official position, that Mr. Abbott was author- 
ized to guarantee all the money that might be required 
in the campaign to secure Sir John Macdonald's 
return to power, as the result of the pending elections, 
if a verbal assurance was given that, in the event of 
Sir John's success, he would consider favourably a 
proposal on terms that would be submitted later for 
the construction of the Pacific Railway by a responsible 
company. Mr. Abbott was one of the few men in 
Canada whom Sir John could trust impHcitly on any 
subject of a dehcate or rather compromising nature. 
Mr. Abbott had been in the old Pacific Scandal deal, 
many of the details of which had never been revealed. 
The required assurance of Sir John Macdonald was 
duly given. He did not ask where the money was 
coming from. It was sufficient for him to know that 
it was to be provided on a liberal scale, and that his 
organizers would not have to make any apologies for 
sudden requirements towards the end of the campaign, 
as he had been compelled to do with Sir Hugh Allan 
seven years previously. 

Under the circumstances it was not surprising that 
by September the promises of " good times " to be 
brought on by additional taxation had taken a thorough 
grasp on the public mind. When the result of the 
polling was published on the evening of the 17th of 
September, 1878, it was seen that Alexander Mac- 
kenzie's Government had been swept out of existence ; 
and that the party which stood convicted in the 
public mind five years previously of granting a great 



BITTER ELECTION CAMPAIGN 119 

public charter in consideration for an election sub- 
scription was to be again entrusted with the admini- 
stration of the affairs of the country. And there were 
a favoured few within an inner circle who did not see 
much likelihood of the Pacific Railway long remaining 
a great national asset. 

Out of the political cataclysm Donald A. Smith 
emerged as a supporter of the defeated Liberal leader, 
being again elected for Selkirk.^ The Tories had 
thrown their strongest forces against him. Into that 
particular part of Manitoba had gone a consider- 
able number of settlers from the vicinity of Ottawa, 
whose admiration for Sir John Macdonald was most 
intense. To bring about the defeat of the head of 
the Hudson's Bay Company, who had turned " traitor " 
in 1873 to their political idol, and on the very spot 
where stood the first stone fort of the Company, the 
tangible evidence of Donald A.'s former authority, 
would make life worth living. The extreme bitter- 
ness of the contest may, therefore, be imagined. 
Donald A. Smith announced his sympathy with his 
political associates at Ottawa during the previous five 
years. Although calling himself a Conservative, he 
declared his intention of continuing, as heretofore, 
to support Alexander Mackenzie. In a memorandum 
written with his own hand, defining his position more 
clearly, he said — 

" As he has no favour to ask and nothing 
personal to desire from any Government, he will 
support only such measures as are conducive to 

1 Appendix, 18. 



120 LORD STRATHCONA 

the advancement of Manitoba and the North- 
west in the first instance, and the general pros- 
perity of the Dominion." 

It remained for the future to offer a peculiar com- 
mentary on this declaration of the principles by which 
he claimed to be actuated. In the meantime the 
syndicate of which he was destined to be the most 
prominent member was secretly pouring money into 
the campaign coffers of the Tory party. The forces 
were at work in which he had important interests that 
were to bring about the defeat of his own friends, and 
aid in the success of his most bitter political and 
personal opponents. A petition charging that his 
election had been secured by bribery and corruption 
on the part of himself and his agents was filed in 
the courts. Parliament was summoned to meet in the 
early part of 1879, too soon after the election for the 
trial to take place, so that he was able to take his seat 
in the House as a supporter of the defeated Govern- 
ment. Election trials against Members of the House 
of Commons cannot be proceeded with while Parlia- 
ment is sitting ; therefore, no matter under what 
circumstances a candidate may be successful, if he 
can stave off the date of the trial by preliminary objec- 
tions until Parliament meets, he takes his seat as the 
representative of the constituency. 

During the Parliamentary recess the Selkirk Election 
Petition came to trial. As is usual in election cases 
the evidence was contradictory, running a close race 
with perjury. The petitioners claimed that, on the 



LOANING MONEY TO A JUDGE 121 

evidence placed before the court, they had fully- 
proved corrupt practices sufficient to void the 
election. Mr. Justice Betourney decided otherwise, 
and confirmed Donald A. Smith in the seat. There 
was great jubilation on the part of Donald A.'s friends 
in the constituency. Selkirk was literally painted red 
that night by the victorious party. But the denoue- 
ment was dramatic. A local journalist discovered 
that the Judge had borrowed money from the suc- 
cessful litigant, and was indebted to him for the 
sum of $4000 (_^8oo), and that a mortgage was 
registered upon the Judge's property in the name of 
Donald A. Smith as security for the loan. 

The petitioners promptly appealed to the Supreme 
Court of Canada against Mr. Justice Betourney's 
decision. The usual legal delays intervened so that 
Donald A. was permitted to take his seat again in 
Parliament in the early part of 1880. He still retained 
his old relationship with the Liberal party. There 
was no sign upon the political horizon of the coming 
events, already beginning to take shape, that were 
calculated to change his relationship in the near future 
towards the political parties in the House — a relation- 
ship fraught with such tremendous import to the 
history of the country. The Liberal leaders were 
unconscious of any negotiations, to which he was a 
party, taking place with the Government, and after 
the disastrous campaign gave him their unreserved 
confidence. There were cogent reasons why it should 
not be known that " wheresoever the carcase is, there 
will the eagles be gathered together." 



XII 

Sir John A. Macdonald in office again — " So much the worse for 
British connection " — Unseated by the Supreme Court — The 
Pacific Railway charter in sight — The agreement — Donald A. 
Smith kept out of sight — Charter hunters' success. 

Sir John A. Macdonald assumed office in November, 
1878. The new administration was no sooner in- 
stalled than it was announced that the manufacturers, 
who had so largely supported the Government in the 
expectation of a change in the fiscal policy of the 
country, had no occasion for anxiety — the promise of 
Protection would be fulfilled in letter and spirit. 
The Budget revealed a system of Protection to which 
no objection could be taken by the advocates of a 
policy which claimed to make the pubhc rich by adding 
to the taxation of the country. Objection was taken 
to the tariff that it would be a serious blow to British 
trade, and the suggestion was made that it might 
endanger British connection. One of the principal 
writers at that time on the leading Tory organ, the 
Toronto Mail, was a brilhant journalist from Nova 
Scotia, Mr. Martin J. Griffin, who was also a defeated 
candidate for Parliament in Halifax in 1878. The 
Mail replied to this expressed fear about the effect of 
the proposed tariff on British trade, by declaring, 

122 



EFFECT ON BRITISH CONNECTION 123 

" then it is so much the worse for British connection," 
an expression which became a byword in Canadian 
poHtics for many years afterwards. This taunt was 
all the more significant because Mr. Griffin had a few 
years before contributed a remarkable article, over his 
own signature, to an American periodical, presenting 
an exceptionally strong case in favour of the annexation 
of Canada to the United States. But the Canadian 
manufacturers were naturally looking after their own 
interests, and were not concerned about the effect of 
the new tariff upon British trade. They had given 
the Government their best services in the recent 
election, and it must be admitted that they were 
amply repaid. 

During the earlier session of 1880, Sir John Mac- 
donald intimated to the House that the policy of the 
administration respecting the Canadian Pacific Rail- 
way would probably be announced at the next session 
of Parliament, which, unless his plans miscarried, would 
be summoned before the end of the year. Immedi- 
ately after the Prorogation Sir John Macdonald came 
to London, accompanied by his more prominent 
colleagues. It was officially announced that negotia- 
tions were under way with British capitalists to secure 
the early completion of the railway. It was even 
hinted in Canada that as the work would be of great 
Imperial service in opening a short route to the Far 
East, the possibility of securing Imperial assistance 
was not too much to hope for. Sir John and his 
colleagues were received with marked attention. Lord 



124 LORD STRATHCONA 

Beaconsfield, in office at that time, gave them his 
countenance. The alleged facial resemblance between 
the British and Canadian Prime Ministers was current 
talk in social circles, evidently pleasing to the vanity 
of both. But the visit to London did not result in 
the attainment of the alleged desired object. No 
arrangement was made in London for the construction 
of the transcontinental railway. Later developments 
were taken to indicate that the visit to London was 
not taken with sincere intentions of completing arrange- 
ments about the Canadian Pacific Railway. To have 
entered into an arrangement in Canada immediately 
after the elections might have created suspicion. The 
episode connected with Sir Hugh Allan was still a 
bitter recollection, not only to the leader of the 
Government but to the Canadian people. At any 
rate the impression created in London by Sir John and 
his colleagues was far from favourable. A leading 
London publication said at the time — 

" The Dominion Ministers have grossly mis- 
managed their mission. They have repelled 
confidence, where they might have nourished 
faith. They have created distrust where they 
ought to have cultivated hope, and they have 
been mysterious and fussy at the same time. 
They have flourished about their object, and have 
inspired communications that have proved to be 
misleading. The upshot is that, with the best 
intentions, perhaps, they have cast no credit on 
the Canadian Pacific Railway." 



UNSEATED FOR CORRUPT PRACTICES 125 

The third session of the Parliament was called in 
the latter part of 1880, after the return of the Govern- 
ment from London. Donald A. Smith had ceased to 
be a Member of the House. The Court of Final Appeal 
for Election Petitions had rendered judgment. At 
the opening of the session the Speaker of the House of 
Commons announced that he had received a notice 
from the Registrar of the Supreme Court that a 
decision had been rendered by that tribunal in the 
following terms — 

" And in the Appeal of David Young and 
Archibald Wright, Appellants, and Donald 
Alexander Smith, Respondent, in the matter of 
the Selkirk Election, by which the said appeal 
was allowed, and the judgment of Mr. Justice 
Betourney, that the said Election was valid, was 
reversed, and the Election was declared void." ^ 

A writ was accordingly issued for a new election 
in Selkirk, and Donald A. Smith's successor took his 
seat as a supporter of the Government. 

The announcement had been made by the Prime 
Minister that a contract had been entered into between 
the Government and a syndicate for the construction 
of the Canadian Pacific Railway. It is putting it 
mildly to say that the country was startled by the 
announcement, as the idea that the highway was to 
be retained as a national asset had been considered 
settled. Until the official statement by the First 
Minister the general public had not received the 

^ Appendix, 5. 



126 LORD STRATHCONA 

slightest intimation of the important change in public 
policy that had been unanimously accepted and 
approved by the recent Parliament. As soon as the 
formal proceedings connected with the opening of 
Parliament were disposed of, the contract entered into 
with the syndicate was placed on the table of the 
House. When the terms became known, astonishment 
gave place to dismay throughout the country. 

The agreement provided for a subsidy of $25,000,000 
(^5,000,000), a land grant of 25,000,000 acres, the 
completion and possession of all the portions of the 
railway then under contract to cost $30,000,000 
(^6,000,000), an absolute railway monopoly in the 
western territory for twenty years, free right of way 
through Government lands, exemption from taxation 
for all time upon their property in the new western 
municipalities, freedom from taxation for an extended 
period upon their land grants, the land grant to be 
selected at the convenience of the Company through- 
out the fertile belt, and extraordinary authority over 
passenger and goods rates. Even to the railway 
promoters in the United States, accustomed to the 
most liberal terms as the result of corruption and 
lobbying in the legislative chambers of that country, 
the lavish terms of this agreement came as a surprise. 

An equally strong syndicate offered to take the 
contract for much less. But the subject immediately 
assumed a party aspect, and there was no question but 
that Parliament would ratify anything the Govern- 
ment proposed. Regrets were expressed that even 



LIGHT HIDDEN UNDER A BUSHEL 127 

the corrupt bargain with Sir Hugh Allan had not 
been carried out, as in that agreement no such favour- 
able terms to the contractor had been given, or such 
sacrifice of Canadian interests been made.^ It was 
feared that means similar to those connected with the 
deal in 1872 had been taken to secure the present 
arrangement, but no encouragement was offered on 
this occasion, as on the former, for information to 
leak out leading to scandalous revelations. Some of 
those interested in this contract knew only too well 
how Sir Hugh's confidences had been betrayed, and 
they left no loopholes for a similar disaster in their 
case. 

Objection could not be taken to the financial 
standing on the syndicate, as revealed by the contract. 
From the political standpoint Liberals were well aware 
that two of the Company had been their own sup- 
porters in recent elections. This rather gave colour 
to the impression that means had been found, other 
than the public might approve, to reconcile the Tory 
leaders to a deal of such magnitude with their political 
opponents. It was well known that the Canadian and 
United States members of the syndicate were all most 
intimate personal and financial friends of Donald 
A. Smith. Surprise would not have been expressed 
at finding him, also, in this great financial deal. 

But the hatred of the Tory leaders towards Donald 
A. Smith made it apparently impossible that he should 
be in the syndicate. The Premier gave an assurance 

^ Appendix, 10. 



128 LORD STRATHCONA 

to his supporters that Donald A. was not one of the 
capitalists connected with the agreement. Notwith- 
standing the denials in private circles, the Opposition 
declined to believe that Donald A. Smith was not a 
sleeping partner. Veiled references were made from 
the Opposition Benches to the possibihty of Donald 
A. being behind the scenes, and extracts from the 
Hansard of 1878 were read as a reminder to the 
Government of the view so recently held by them of 
the possible personnel of the syndicate. Supporters 
of the Government in the House were told that Sir 
John said if Donald A. Smith had anything to do 
with the agreement he would consign the project to 
the four winds of heaven. To Sir John Macdonald 
Donald A. was Anathema Maran-atha. The Govern- 
ment at that time, judging from later revelations, was 
not in the position of a free agent. The money had 
been accepted in the recent campaign upon clearly 
defined terms. Had it all come from absolutely 
trustworthy and confidential sources, the secret under- 
standing might be flouted. But the amounts were too 
large to be advanced by other than a very wealthy 
syndicate, and it was in their power to bring dire 
destruction upon all concerned. Both the syndicate 
and those in authority knew this. 

The contract finally passed Parliament in the form 
in which it had been submitted. But before that 
point was reached some very unpalatable things were 
said by responsible statesmen,^ and special arrange- 

^ Appendix, 14. 



VIOLENT DENUNCIATION OF CONTRACT 129 

ments had also to be made with the supporters of the 
Government from the province of Quebec. In the 
latter case a pledge w^as given that either the Canadian 
Pacific Railway, or the Government, would purchase 
from Quebec a railway upon which the province had 
unwisely expended about $12,000,000 (^2,400,000), 
In summing up the objections of the Opposition to 
the contract, the Hon. Edward Blake challenged the 
Government to appeal to the country upon the 
proposals before the House, asserting that if it was 
done the responsible electorate — 

" will take the earliest opportunity to inflict a 
summary penalty upon those persons, offenders 
for the second time, who having once betrayed, 
when entrusted with power, their country's 
honour, have now taken advantage of the oppor- 
tunity a too confiding public conferred upon 
them, to betray in the same transaction her most 
vital and material interests." 

The charter-hunters had at last found the desires 
of their hearts fulfilled. They had secured the most 
stupendous contract ever made under responsible 
Government in the history of the world. It might 
be true that the conduct necessary to secure the goal 
had been such as is not usually adopted in private 
life. But the hope of the company or syndicate 
undoubtedly was that in the future they might, like 
the Greeks, pacify the gods by gifts. 



130 LORD STRATHCONA 

To attain their end the syndicate had broken 
poHtical and personal relationships that could never 
be repaired. Two Governments had been wrecked. 
They had assisted in discrediting one political leader 
through their denunciation of the part he had been 
saddled with in connection with the Pacific scandal. 
They were now laying the foundation for the utter 
demoralization of the public life of a great new 
country, and burdening Parliament with objectionable 
associations which were to remain after they them- 
selves had disappeared. They had assisted in re- 
moving from the highest office in the gift of a demo- 
cratic people an honourable, high-minded and patriotic 
statesman because he had declined to allow Parliament 
to be used for the purpose of creating enormous 
private fortunes at the public expense. They had 
stopped at nothing, and they had succeeded. 

George Stephen and Duncan Mclntyre of 
Montreal ; John S. Kennedy of New York, banker ; 
Morton, Rose & Co. of London, England, merchants ; 
Kohn, Reinach & Co., Paris, bankers ; and Richard 
B. Angus and J. J. Hill of St. Paul, U.S.A., were in- 
corporated as the Canadian Pacific Railway Company. 
In the list of the first directors of the Company, 
Baron de Reinach represented his banking house, and 
Henry Stafford Northcote and Charles Day Rose the 
London banking house, the others being the individual 
names mentioned in the Act of Incorporation. The 
secrecy about Donald A. Smith's connection with the 
syndicate was kept until every possible concession had 



THE POLITICAL CHAMELEON 131 

been granted. Meanwhile, he was willing to wait for 
the triumph so sure to come later. 

Donald A. Smith had smarted under the humiliation 
of the decision of the court which deprived him of 
his seat in the House of Commons. Now came his 
secret connection with a project that had become the 
dream of his life. He knew, unless his plans failed 
in the next few months, that he would eventually 
be acknowledged as the master-mind of the enter- 
prise ; and the announcement of his connection with 
the great project was not long withheld. At the 
recent bye-election in Selkirk (1880) he was again a 
candidate for Parliament. In 1872 he ran as a sup- 
porter of the Tory party — in 1874 and 1878 he was 
supporting the Liberals — and in 1880 he professed 
political independence. But such political vagaries 
were too much for even the shifting population of 
the west, and he was defeated by a strong local 
candidate. 

In the effort to overcome the popularity of the 
other candidate it had been necessary to have recourse 
to a banking-account specially opened for the purpose. 
Money was expended freely. When the result of the 
polling was declared a few faithful adherents gathered 
at the committee rooms of the defeated candidate. 
In explaining to Donald A. that nothing had been left 
undone to ensure success, the secretary expressed 
himself in the most forcible and up-to-date western 

style : " Donald A., the voters have taken your 

money and voted against you." All eyes were turned 



132 LORD STRATHCONA 

to the unsuccessful candidate to see whether he was 
willing to take this explanation of his defeat, and the 
quiet reply came, as if he was speaking to himself : 
" You have properly expressed the situation." Winni- 
peg was never anything but a bitter memory to Lord 
Strathcona from that day. 

Some miles out from Winnipeg he had a charming 
residence, known as Silver Heights. In the years to 
come, as the construction of the railway progressed, it 
might be necessary to entertain visitors on a fairly 
large scale there. But rather than go through Winni- 
peg to his residence the company constructed a 
railway siding off the main line, so that his private car 
could be run to Silver Heights without entering the 
city. 

Donald A. Smith was as punctilious about paying 
off personal scores as in paying his debts. He never 
failed with either. In the future, Winnipeg's action 
was not to be forgotten ! 



XIII 

Amassing great wealth — The skeleton in the cupboard — Facing 
sudden ruin — Failure to sell bonds — Applying for assistance — 
The penalty for deception — The Cabinet refusal. 

Meanwhile, the construction of the great railway 
was being carried on apace. The active membership 
of the Company, like that of the syndicate, was 
limited to a chosen few, and Donald A. Smith's 
connection was no longer kept in the background. 
He was the great controlling spirit in all the prin- 
cipal business of the syndicate. Within the charmed 
circle construction-companies, purchasing-agencies and 
land-companies were formed. Properties required 
in the west by the Railway were sold by directors 
to the great corporation at exorbitant valuations, as 
a recent departmental inquiry has abundantly proved. 
From every possible source those in the inner ring 
never failed to provide for the promotion of their 
own financial interests. Their wealth soon became 
proverbial. Each vied with the other in the erection 
of palatial residences. 

But with all their apparent prosperity, there was 
a skeleton in the cupboard. The syndicate had 
apportioned to themselves large blocks of the stock of 
the Company at a very low rate, and they were 

^23 



134 LORD STRATHCONA 

unable to get the investing public in Europe or the 
United States to accept the stock or bonds of the 
Company. It was not so much from a want of 
confidence in the value of the securities as for other 
reasons. A vivid recollection still existed in the 
principal financial markets of the incidents connected 
with the purchase of the Western United States 
Railway. The Dutch banking-houses which had lost 
their millions through the sale of their bonds to the 
Canadian syndicate, warned financial centres against 
dealing with the Canadian Pacific syndicate, and their 
efforts were apparently successful.- 

As the principal members of the syndicate were 
also directors of the great banking institution of 
Montreal, they had recourse again to the funds under 
their control. The deal with Jesse P. Farley and the 
Dutch bondholders, although directly so profitable, 
had indirectly led to the present situation. The failure 
to realize on the stock or bonds of the Company made 
this necessary, notwithstanding the narrow escape 
from the financial catastrophe that threatened them 
twelve years previously. Time went on and still the 
railway securities could not find a favourable market. 
The stock could only be disposed of at ridiculously 
low figures. Little did the investing public realize 
the value of what they were then refusing ! 

More money had to be borrowed from the Bank 
in order to carry on the work of the Company. The 
ever-increasing demands of the Construction Com- 
pany had to be met at all hazards. To suspend 



THE GOVERNMENT OR PRISON 135 

payment meant absolute and hopeless ruin. Not 
only would such a result jeopardize them personally, 
but it might bring serious consequences upon the 
bank. By this time an amount far in excess of the 
paid-up capital had been advanced. The only mem- 
ber of the syndicate who never became pessimistic, 
or who never lost his nerve, was Donald A. Smith. 
The general manager of the bank, although he was 
an official appointed by the directors, became alarmed 
for his own safety, and, when a further sum was 
needed, he refused to allow it to be taken without 
additional security being lodged in the bank vaults. 

The directors had already given the bank all the 
securities they possessed. A time came when they 
had to have $1,000,000 dollars (^200,000) or suspend 
payment. They dare not go to any other bank for 
fear of creating uneasiness and probably panic. The 
risks which had been taken on the previous occasion 
had not been forgotten. The late Duncan Mclntyre, 
one of the syndicate, was persuaded to go among his 
friends and get possession of sufficient collaterals to 
justify the loan of the amount that was needed. As 
he laid them on the table at a meeting of the directors, 
he said, with a trembling voice : " Remember, if these 
are lost, not only am I ruined, but I shall bring down 
with me every friend I have." There was nothing 
to do now but to apply to the Government at Ottawa 
to come to their assistance. If that should fail there 
was ruin or worse for everyone connected with the 
enterprise. As Lord Strathcona, in later years, not 



136 LORD STRATHCONA 

infrequently referred to the position : " It is to the 
Government or the Penitentiary." It was decided 
that one of the original syndicate, accompanied by 
Sir J. J. C. Abbott, the solicitor of the Company, 
should go to Ottawa and see what could be done with 
the Government. 

Sir John Macdonald was still First Minister. He 
was then secretly preparing to dissolve Parliament 
before the end of its full term, although only a few 
trusted friends were aware of his purpose. The 
syndicate had pushed on the construction of the 
Railway, so that it was likely to be completed five 
years earlier than the date stipulated in the contract. 
They had not failed in responding to the appeals of 
the Tory party for contributions, and amounts 
hitherto unheard of in Canadian elections rolled into 
the campaign coffers. They had turned the whole 
machinery of the railway and of its contractors into 
Tory electioneering agencies. They had not hesitated 
to use every possible form of corrupt influence to 
drive out of public life every opponent of the syndi- 
cate, and these were, naturally enough, opposed to 
the Government of Sir John A. Macdonald. It is 
no exaggeration to say that Parliament had become 
the subservient creature of the syndicate, and, a priori, 
the Government owed to the syndicate its retention 
of power. 

But the representatives of the syndicate, who were 
selected to interview the Premier on the vital question 
at issue, could not forget that a solemn assurance had 



UNRELENTING VENGEANCE 137 

been given to Sir John Macdonald, when the original 
negotiations were in progress, that Donald A. Smith 
was not interested in the undertaking. They remem- 
bered his searching inquiries on that point. The 
little girl, with an imperfect knowledge of the Bible, 
who said that " lies were an abomination to the Lord," 
and then added " but a very present help in time of 
need," expressed the views of this deputation exactly. 
Sir J. J. C. Abbott and his colleague knew that society 
will forgive almost every human weakness against 
public morals, except downright lying. This is 
recognized nowhere more clearly than amongst poli- 
ticians, and Sir John Macdonald was no exception to 
the rule. It was the ghost of that misrepresentation 
to the Premier that now haunted them on their way to 
the capital. 

Sir John Macdonald had a reputation for never 
forgiving one whom he once regarded as having 
betrayed him. He claimed to have Highland blood 
in his veins. Every one knew that he had not ceased 
to express his views with remarkable clearness on the 
score of Donald A. Smith's desertion in the great crisis 
of his life in 1873. It was well known now that he 
had been deceived in the early negotiations, and that 
Donald A. was not only then actually in the syndicate, 
but he was the mainspring of its existence. The 
reception that Stephen and Abbott received from 
Sir John Macdonald was even worse than they had 
feared. At the beginning he asked for a full expla- 
nation. The deputation had to admit that Donald A. 



138 LORD STRATHCONA 

had been with the syndicate from the beginning. 
They told the Prime Minister that they were com- 
pelled to ask for Government assistance to complete 
their work, explaining how the money market had been 
against them. At first he emphatically refused to 
consider their request, alleging that such action on 
the part of the Government would meet with active 
opposition in the elections that were soon to take 
place. They pointed out that the stoppage of the 
work on the great railway, their own ruin, and the 
serious consequences in banking circles, would pre- 
cipitate such a crisis as would bring down the Gov- 
ernment anyway, all of which might be avoided if 
Parliament would assist them temporarily ; and they 
told the Premier that a loan of not less than 
$30,000,000 (_^6,ooo,ooo) was necessary.^ After much 
persuasion Sir John would only agree to state the 
case to the Cabinet that afternoon, promising to 
abide by the decision of his colleagues. Abbott im- 
mediately returned to Montreal, while his colleague 
remained in Ottawa. 

When the Cabinet meeting was concluded that 
afternoon, George Stephen was in the ante-room of 
the Privy Council awaiting the decision. As members 
of the Government came out, the Canadian Pacific 
magnate knew from their manner that an adverse 
decision had been reached. He accompanied the 
Premier to his private office to hear the account of 
what had taken place. Sir John told him that he 
^ Appendix, 11. 



AN UNFORGIVEN OFFENCE 139 

had briefly outlined the situation to his colleagues, 
leaving the matter entirely open to them, without 
expressing his own views. There was some time 
spent in considering the merits of the case, and the 
possibilities to the country of their failure. The 
principal subject under discussion, though, was Donald 
A. Smith's connection with the exposure of 1873, and 
his desertion of the Tory party on that occasion — 
the withdrawal of his support from the Government, 
Sir John declared, being prompted by the hope of 
personal benefit through their downfall. When he failed 
to accomplish his purpose with the Mackenzie Cabinet, 
he succeeded in using the present Government as his 
unconscious tools to attain his object. Sir John told 
Mr. Stephen that he could hold out no hope whatever 
of the request for a loan being granted — the desperate 
condition of the members of the syndicate did not 
appeal to his colleagues under the circumstances. 



XIV 

Staggering under the load — An Irishman to the rescue — Frank Smith 
and his colleagues — Cabinet discussion — George Stephen's re- 
morse — A Scotchman's revenge — The bitter cup. 

It was a weary figure, with the face of a man suddenly 
aged under stress of the most severe mental anguish, 
who was leaving Ottawa that evening for Montreal. A 
member of the Cabinet, Hon. Frank Smith, who had 
evidently hurried to the station to see him, walked up 
quickly and said, " Is that you, Stephen ? I have 
been looking for you and I did not recognize you. I 
am going to help you. You must remain here three 
days." Stephen replied that nothing would induce 
him to remain, and that he " would never be seen 
in Ottawa again." Frank Smith's persuasiveness pre- 
vailed, and Stephen returned to private quarters 
where he would be free from the risk of being seen 
by inquisitive reporters. Smith assured Stephen that 
he would bring the matter up in the Cabinet at the 
next meeting, as he hoped that the decision which 
had been arrived at that day would be reversed. A 
trusted Canadian Pacific official, Mr. G. H. Campbell, 
who happened to be at Ottawa at the time, was 
asked by Frank Smith to stay with Stephen, and not 

to allow anyone to have access to him. Many years 

140 



THE PANGS OF ANXIETY 141 

afterwards Mr. Campbell told the writer that these 
three days were among the most anxious of his whole 
life. He was the constant companion of a man torn 
with anguish and remorse, whose heart seemed breaking 
with compassion for the friends whose downfall he 
felt himself responsible for, and with fear of the all- 
too-probable failure of Frank Smith's valiant efforts 
to save an almost ruined situation. 

George Stephen was Donald A. Smith's cousin. 
This was the first set-back met with in his long and 
successful career. He, like Donald A., had risen 
from the ranks. From small beginnings, by industry 
and steadfastness, he had become one of the great 
financial forces in Canadian commercial life. He was 
wealthy, as wealth was counted in Canada forty years 
ago, ere he had ventured on that expansive sea of 
railway speculation with Donald A. Smith and J. J. 
Hill at the helm. He had profited to the extent of 
millions with his colleagues in the American railway 
venture as the outcome of the fifty million gulden 
which the Dutch bondholders had lost. The only fly 
in that pot of ointment was the fact that a suit was 
being threatened in the Minnesota courts by Jesse P. 
Farley, the Official Receiver of the railway. Farley 
was knocking at the door for one-fifth of the profits 
which he claimed the Company held in trust for him, 
and he claimed that it was in George Stephen's name 
that the odd one-fifth was placed at the time of the 
transaction. That there would be serious allegations 
made by Farley in the courts there was no question, 



142 LORD STRATHCONA 

although there might be some doubt as to whether he 
would succeed with his claim. The allegations, how- 
ever, would be damaging to the reputation of all the 
persons concerned. But the recollection of anything 
that might have occurred in the early history of railway 
speculation gave place to the critical complications of 
the present moment. Unless the advances the directors 
had authorized the general manager of the bank to make 
to the syndicate could be returned by the aid of a 
Government loan, long and honourable careers might 
. . . Oh, it was worse than madness to look into the 
future ! Would the Cabinet relent ? 

Hon. Frank Smith was the representative Roman 
Catholic in the Dominion. He held a seat in the 
Cabinet without portfolio. Very large financial inter- 
ests engrossed his attention, and he had declined to 
accept the responsibilities attached to a department. 
He possessed the highest standard of personal honour, 
and was blessed with that large-hearted Irish char- 
acteristic of sympathy for friends and foes alike. He 
could take greater liberty with the Premier than any 
other of the latter's colleagues. In the Church he 
exercised an influence with the clergy unequalled by 
any score of persons in his own province, and the 
clergy were, rightly or otherwise, credited with having 
considerable political influence with their parishioners. 
It was believed by Sir John Macdonald that Frank 
Smith's influence with his co-religionists was so great 
that a word from him would bring about great changes 
in the Catholic vote. He might be charged with 



WARM-HEARTED IRISHMAN 143 

holding peculiar political views, because he is known 
to have subscribed towards the election expenses of 
a political opponent. This, however, was only when 
the candidate whom he favoured belonged " to the 
true Church," or when the one whom he did not 
want to see elected belonged to that extreme wing 
of Protestantism known as the Orange Order. He 
was immensely wealthy, but no part of his wealth had 
been secured by influences unduly exercised in the 
responsible positions of confidence or trust which he 
had occupied in public life. He belonged essentially 
to the old school of Canadian statesmen. 

Hon. Frank Smith made good the promise that he 
gave to George Stephen. For three consecutive days 
he brought up the question in the Cabinet of the 
Government assisting the Syndicate. Twice he was 
compelled to return to Stephen with the discouraging 
news that nothing had been accomplished. After 
the members of the Government had discussed the 
proposition on the third day, Smith announced that, 
unless his colleagues accepted his views and came to 
the rescue of the Syndicate, he would resign his seat in 
the Cabinet. He also added that he would not with- 
draw his opposition to the Government until he had 
accomplished the defeat of those who were then 
sitting with him around the Privy Council Board. 
Before retiring he said that he would wait their 
decision, and that if they determined to continue in 
their opposition, he would announce his resignation 
that evening. The Cabinet knew that with Frank 



144 LORD STRATHCONA 

Smith's influence thrown against them their defeat 
was more than probable. Shortly after sunset Frank 
Smith rushed to George Stephen and told him that 
the cause was won. 

But the rank and file of the Government supporters 
in Parliament had yet to be pacified. A caucus or 
meeting of the members and senators was called, 
where the decision of the Government was announced. 
The number of those opposed to the proposition was 
unprecedented upon a question of Government policy. 
The members were willing to assist the syndicate, 
" but not Donald A." For long the discussion waxed 
hot and furious. Speaker after speaker pictured the 
" treachery of 1873." They declared they would go 
out of power (and power is dear to the heart of both 
political parties in Canada) rather than give their 
consent to any policy that would save Donald A. Smith 
from the pit which he had so fearlessly dug for himself 
and his friends. Many of the members of that caucus 
forgot for the moment that it was the money of the 
syndicate that had made their campaign successful 
in 1878, even when Donald A. Smith was contesting 
a constituency as a supporter of the Government of 
Alexander Mackenzie ; that at every election since 
the syndicate had poured out money like water to 
meet their party demands ; that a number of those 
present, large enough to give the majority necessary 
to keep them in power, occupied seats in Parliament 
solely because the great influence of the Company 
had been exerted in their favour ; and, more humili- 
ating from the national standpoint than all other 



PAYING THE PIPER 145 

considerations, not a few were sitting there with the 
money in their pockets that they had " borrowed " 
in some form or another from members of the syndi- 
cate, with no thought of returning ; and this magnate 
whom they were so strenuously denouncing, had 
contributed a goodly share towards these " loans." 
However, after blowing off steam, a safety valve for 
indignation, calmer counsels eventually prevailed, but 
not until Sir John A. Macdonald had promised that 
some way would be found to humiliate Donald A. 
Smith before the final settlement of the question. 

Sir Charles Tupper, the most powerful speaker in 
the Government, was about to be appointed High 
Commissioner in London at the beginning of these 
complications, but he remained in the Cabinet to 
assist in keeping the recalcitrant Tories in line. His 
presence in the House was also necessary, where, it 
was expected, the Opposition would muster in strong 
force against the Government proposals. The passage 
of the loan was finally effected, but not until certain 
members of the House had made their own terms 
with the syndicate. Largess was distributed with a 
bountiful hand. Common stock of the Company 
was placed in trust with friends in the United States 
for very prominent politicians in Ottawa, a fact which 
came to light in later years, when Wills had to be 
probated. A necklace was presented to the wife of 
the Prime Minister, the Press ostentatiously announcing 
the cost to be $200,000 (^40,000). Rumours were 
circulated of large sums of money being found by other 
members to their credit in their banking accounts, 



146 LORD STRATHCONA 

with no intimation as to the identity of the donor. 
Duncan Mclntyre, who retired from the syndicate 
a few years afterwards, remarked to friends on one 
occasion, that the loan was an expensive luxury, 
although it had saved the fortunes of all concerned, 
and had averted a commercial calamity. 

Previous to the legislation reaching the last stage 
however. Sir John Macdonald had decided upon the 
ingredients in the cup of humiliation to be taken by 
Donald A. Smith. During part of the time which 
had elapsed since the syndicate secured the charter 
for the construction of the railway, Donald A. had 
posed as an Independent Conservative, but really 
with no pronounced political opinions. He never 
had the settled convictions on public questions that 
are regarded as essential under responsible Govern- 
ment. Political predilections are strong in Great 
Britain, and nowhere is this more evident than in the 
Press, but they are much more pronounced in Canada. 
The political stream there is far from sluggish. In 
every condition in life — financial, professional, com- 
mercial, manufacturing, agricultural, labour, and 
unfortunately too frequently in clerical circles — 
politics have a powerful hold on the community. 
" The man in the street " is everywhere. Ninety-nine 
per cent, of the people are politicians. Donald A. 
Smith was peculiar even among the remaining one 
per cent. Perhaps this attitude on public questions 
and party government was owing to the fact that he 
only entered the political arena after he had passed 
middle life. But his attitude remains unique. Of no 



A HIGHLANDER'S REVENGE 147 

other public character in Canada can it be said that 
he supported every Government in power in the 
Dominion since Confederation. All the intrigues of 
the syndicate to defeat the Liberal candidates through- 
out the Dominion grew and waxed strong because 
the Tory Government was always willing to assist in 
any legislation they required ; while the Liberal party 
was opposed to the extensive privileges and powers 
conferred upon them, and which were being con- 
stantly augmented by repeated acts of legislation. 
Above all else the Liberal leader warned the State of 
the danger of the syndicate becoming too potent a 
factor in the political life of Canada. 

The syndicate heard with dismay that Sir John 
Macdonald insisted, as one of the conditions of the 
loan, that Donald A. Smith should contest a Montreal 
constituency at a future election, not only as a Govern- 
ment supporter, but a personal admirer of his own. 
It was an awful dose. To be asked, or rather com- 
pelled formally to declare unbounded confidence in 
the political leader whom he had pubhcly abandoned 
in 1873, to express his personal admiration for the 
leader of that Parliamentary mob which had thrown 
such offensive epithets at him in the House of Com- 
mons years ago, and who himself had deliberately 
shouted, " That fellow Smith is the greatest liar I 
ever met," a complete record of which still exists in 
the pages of Hansard ^ — was indeed drinking the cup 
of humiliation to the dregs. He also knew that he 
must publicly abjure friendship with those who had 
1 Appendix, 4. 



148 LORD STRATHCONA 

been his only friends on the occasion of the incident 
which was really the cause of the suffering he was 
now doomed to undergo. Sir John A. Macdonald 
was growing old, although apparently as strong and 
healthy as ever. He had sweated blood over the 
humiliation of the Pacific scandal of 1873, perhaps 
not so much for what he had hastily and carelessly 
done, as from the subsequent revelations. He had 
colleagues who in that terrible hour had privately 
intrigued to get him removed from the high position 
of leader of the party. To force a certificate of 
character from Donald A. at the present moment 
was some satisfaction. There was no way of escape 
for " the traitor." And Donald A. Smith had the 
blood of Highlanders in his veins. It was a strange 
coincidence that ten years later he should erect a 
summer residence in the Vale of Glencoe, where 
from his bedroom window of a moonlight night he 
could see the solemn and lonely pillar commemorating 
the cruel massacre of the Macdonalds — Scotchmen 
who had been run in a different mould. 

Only a Scotchman could conceive of making a 
countryman of his own pay such a price as Sir John 
demanded from Donald A. Smith. A more abject 
humiliation was impossible. Donald A. Smith, how- 
ever, took his medicine like a man, but his friends 
knew that he would rather have paid a fortune and 
have had the cup pass from him. 

However, the loan of $30,000,000 (^6,000,000) 
was secured and the situation effectively saved. 



XV 

Demoralization of public life — Members appeal for funds to the 
syndicate — Fraudulent company subscriptions — A hungry lot — 
Donald A.'s opinion — The cloak for many offences — A fortune 
in a night — Demoralization run riot. 

The point has now been reached from which dates 

the open demoraHzation of the Canadian Parhament. 

Year after year the syndicate came back for additional 

legislation. The favours already received showed how 

easily they could clamour for more. Members of 

Parliament were publicly retained in the interests of 

the Company. The corridors of the Senate and the 

House of Commons swarmed with their lobbyists. 

Parliament awakened to the fact that private fortunes 

were being created by the votes in the House. The 

prevalence of that idea in the minds of public men 

could have but one result. If the power which they 

exercised could distribute wealth, or its equivalent, 

in the way of charters that might be sold to the great 

corporation, the natural inquiry was " Where do I 

come in ? " The cankerworm had reached the vitals 

of the body politic. 

To bask in the favour of the local Canadian Pacific 

Railway magnates meant everything. In the purchase 

of supplies, in the awarding of contracts, in options 

149 



150 LORD STRATHCONA 

on proposed town sites along the line of railway, in 
obtaining inside information about the prospective 
route of branch-lines for speculative purposes, in 
allowing special terms and prices in purchasing 
railway lands, in the free distribution of paid-up 
stock of the Company's subsidiary corporations, 
members of the House of Commons were not for- 
gotten. For those in professional life there were 
always vacancies and liberal retaining fees. The 
banking books and financial statements of members 
of the syndicate showed demands made upon them 
by members of Parliament in the form of requests for 
subscriptions for bogus companies, incorporated for no 
other purpose than to furnish an excuse for asking 
these railway magnates to subscribe tens of thousands 
of dollars, in return for which the subscribers never 
received anything more than scrip, which was just so 
much waste paper. 

When telling the writer of some of his extra- 
ordinary experiences with public men of the country 
at this particular time. Lord Strathcona asked me if 
I had any acquaintance with a certain gentleman, now 
living, a member of the Canadian Legislature at this 
period and a supporter of Sir John Macdonald. Lord 
Strathcona went on to say that, upon one occasion, 
immediately after he had sailed from New York for 
Liverpool, a cheque was received at his office in 
Montreal from the member in question, purporting 
to be an interim dividend for three months on $10,000 
stock which he (Donald A. Smith) had subscribed and 



POLITICAL HIGHWAYMEN 151 

was said to hold in Company, and of which the 

sender was President. The amount of the cheque 
was $150. Three days afterwards a demand Draft 
or Bill of Exchange was received at his ofhce for 
$10,000 as payment for the stock which he " had 
probably forgotten to remit." The manager of the 
office paid the draft on presentation. At the end of 
the year in looking over the accounts Lord Strathcona 
came across this item. The manager explained. 
When telling the story to the writer in 1900 Lord 
Strathcona added : " I said nothing, and even now 
my manager does not know that the whole business 
was a carefully prepared fraud." He quietly added, 
" They were a hungry lot in Ottawa then." 

Among the list of directors mentioned in the 
charter incorporating the Canadian Pacific Railway, 
granted by the Canadian Parliament, are names 
honoured in the history of Great Britain ; names 
significant of commercial, official and political promi- 
nence, whose records stand unblemished. In this case, 
however, they stood as a covert from the storm for the 
Canadian end of the Company. It has never been 
suggested for a moment, during the times of the 
greatest possible interest in this question in Canada, 
that these co-directors were associated in the remotest 
degree with the painful and demoralizing events that 
marked the operations of the syndicate in the Do- 
minion. Whether any of them participated in the 
profits that the Canadian directors accumulated or 
not, does not necessarily form a subject of inquiry. 



152 LORD STRATHCONA 

That they were kept in the dark about the other 
matters is accepted without question. That for any 
consideration whatever, they could become parties to 
the conduct of business which they would condemn 
in British politics, is impossible to imagine. 

The mistake made by those in Canada who were 
opposed to the syndicate was in not appealing to the 
British and foreign representatives on the board of 
directors to assist in putting an end to the objection- 
able methods then in full swing in Canada. Perhaps 
if this had been done, many of the darkest pages in 
the political history of the Dominion would never have 
been written, and the stigma that must ever remain 
on great names would have been avoided. 

A saturnalia of corruption on other lines also took 
possession of Parliamentary life. It began at the head 
and gradually made its way to the rank and file. The 
fundamental article of faith under the new conditions 
was that public men should use their representative 
positions for purposes of personal gain. A state of 
public morals soon arose that would have been utterly 
abhorrent to the members of Parliament a decade 
earlier. No one can think of Draper, Harrison, Howe, 
the Camerons, the Richards, and a score of others 
using Parliament as a stepping-stone to personal wealth. 
Family history in those earlier times gloried in the 
fact that the patrimony had all been spent in the 
public service. In every one of the old provinces 
there may be seen places telling of the ruined fortunes 
of those who had once served the state. It may not 



BUYING POLITICAL SUPPORT 153 

be a matter for congratulation that the state accepts 
a man's time and fortune and gives nothing in return ; 
but it is a subject for pride that so many of those 
representatives, in the first thirty years of responsible 
Government, strove to raise so high a standard of 
honesty and integrity in public places. 

The arrangement with the syndicate provided for 
early completion of the railway across the prairies, 
and opened the door of unlimited possibilities to those 
having access to the charmed circle at Ottawa. 
Colonization companies were granted enormous areas 
of the public domain within the fertile belt. The 
personnel having control of these companies must, of 
course, be persona grata to the Government. That 
was the open sesame. Interests in these concessions 
were available to many who were willing to change 
their political faith for the sure and certain hope of 
getting rich at the expense of the state. The only 
wonder is that many more did not fall. The Dominion 
Government, also, formally took possession of 100,000 
square miles of the western part of Ontario, about 
which there was a dispute as to jurisdiction between 
the province and the Dominion. The decision of the 
Privy Council subsequently awarded the disputed 
territory to Ontario. But in the meantime, while the 
matter was sub judice, extensive areas in the territory 
were parcelled out among supporters of the Govern- 
ment. The land was covered with valuable timber 
limits, for which a ready market was available with 
the lumber kings in the state of Michigan, where the 



154 LORD STRATHCONA 

forests were already very much depleted. Scores of 
members of Parliament were among those to whom 
these lands were distributed. 

Forests in the new western prairies, where timber 
was comparatively scarce, were sold to certain members 
at the nominal figure of $5 (^i) per square mile. One 
of these concessions was secured by an influential 
member of the House of Commons, the late John 
Charles Rykert. He effected a sale to a millionaire 
named Sands, of Detroit, receiving in payment thereof 
four short-date promissory notes of $50,000(^10,000) 
each, which were afterwards paid in full. Depart- 
mental papers giving the details of this wholesale 
distribution of the public domain among the supporters 
of the Government, were brought down to Parliament 
in the most unblushing manner. 

Ministers of the Crown received subscriptions for 
campaign purposes from contractors and those seeking 
favours from their own departments, forgetting or 
indifferent to the fact that the proof of Sir John A. 
Macdonald and Sir George Cartier having done so 
with Sir Hugh Allan in 1872 brought about the 
downfall of the Government of that day. But things 
had moved on in Canada since then ! 

Cabinet Ministers secretly held lands in their own 
names and arranged with confidential officials to 
unload their holdings on the public, a practice that is 
in vogue while these notes are being written, but 
matters have so far improved that the knowledge of 
this is withheld from Parliament ; as is also the fact 



DEMORALIZATION OF PUBLIC LIFE 155 

that in very recent times a Cabinet Minister at the 
head of one of the great spending departments has 
personally collected toll from successful tenders before 
awarding the contracts. In the period covered betvi^een 
1880 and 1890 the majority in the House of Commons 
boldly twitted their political opponents with "not 
being in the swim." But these influences spread to 
some extent to the other side of the House, where 
substantial favours from the syndicate were secretly 
distributed. 

This was the deplorable state of affairs in the Cana- 
dian Parliaments between 1880 and 1890 — the climax 
of the demoralization of the public life in the Dominion. 
It was the direct result of the corrupt means inaugur- 
ated by a syndicate of capitalists getting possession of 
the charter for the construction of the Canadian 
Pacific Railway, as well as the portions of the completed 
line that a previous Prime Minister had declared he 
would leave as a heritage to the people of Canada. 
As the syndicate came back to Parliament year after 
year, for further concessions in the way of legislation, 
so in a corresponding manner the circle of political 
demoralization widened. The wonder is, looking back 
upon the events of that dismal period in Canadian 
history, that even a leaven of Liberal Members retained 
their seats in the House, or made any attempt to stem 
the tide of evil influences. 



XVI 

The American railway deal — Dealing with the Official Receiver — 
Wants share of the spoils — Thirteen years' lawsuit — The syndicate 
won in the courts — Profits from American deal. 

It was fully expected, within a year from the time 
that had now been reached, that the railway across 
the Rocky Mountains to the Pacific Ocean would be 
completed. Things had also been moving satisfac- 
torily with the St. Paul, Minneapolis and Manitoba 
Railway, the venture of ten years previously. Since 
1882 dividends had been regularly received on the 
$15,000,000 stock that the syndicate had presented to 
themselves on the incorporation of the Company, the 
only cost for which had been the account for printing. 
The railway formed the basis of the extension to which 
J. J. Hill was giving his attention, and in which the 
original syndicate, including Donald A. Smith, retained 
their interest. The much disputed Pembina Branch 
of the St. Paul, Minneapolis and Manitoba Railway 
had been long completed, and Winnipeg was connected 
by rail with the outer world. An obliging Senate at 
Ottawa discovered after the defeat of the Mackenzie 
Government that stronger Imperial reasons existed 
for the connection being made with the United States 
railway system than had existed against it two years 

156 



EFFECT OF RAILWAY MONOPOLY 157 

previously, and arrangements were made with the 
syndicate for the construction of the Pembina branch 
from Winnipeg to the international border as a branch 
of the Canadian Pacific system. It was argued this 
railway was now necessary as a means of transport for 
construction supplies for the prairie end of the 
Canadian system. 

The query is perfectly natural as to why the syndicate 
who got possession of the railway connection from 
Minneapolis to Winnipeg should also want to control 
the transcontinental line through Canada. This is 
explained by one of the terms of the agreement be- 
tween the Canadian Government and the syndicate — 
the monopoly that was given of the railway system 
in the Canadian west for twenty years. The Canadian 
end of the syndicate could depend upon J. J. Hill 
taking steps in the United States to prevent the 
construction of any other line to the Canadian border. 
The same capitalists were in both enterprises. Be- 
tween them there would be no competition in rates, 
so that the general public would be at their mercy. 
And this is how it worked. The " Empire-Builders " 
had the great farming community of the west between 
the upper and nether millstones. 

Meanwhile Jesse P. Farley, the former Receiver, 
clamoured for his share of the spoils. He was the 
principal factor in doing the Dutchmen out of their in- 
vestment, and held an assurance from some one, that 
one-fifth of the profits would fall to his lot. Had he 
dealt honestly with the Dutchmen who trusted him, 



158 LORD STRATHCONA 

they would not only have received their interest 
regularly, but eventually the principal as w^ell, 
amounting to sixty-five million gulden. Farley found 
that — 

" The downhill path is easy, 

And there is no turning back." 

He could not undo the wrong he had done, and he 
had had no share of the good fruit. He was doubly 
aggrieved. In Montreal and St. Paul princely man- 
sions had been erected by those who had benefited by 
his actions. Without him they could have done 
nothing. His advice and co-operation had been 
essential and effective. He said he had been promised 
the one-fifth, but because of his position as Receiver 
it was necessary that the transaction should not be 
put into writing, and was to remain a secret agreement. 
The syndicate had taken possession of the property 
and then sold the whole concern out to themselves 
under the name of the St. Paul, Minneapolis and 
Manitoba Company. They now boldly declined to 
recognize his claim and give him the fifth that he 
alleged he was entitled to under the terms of the 
original negotiations. 

It is impossible to defend the code of morals that 
allows a Receiver, who is a court officer, and has definite 
trust responsibilities, to participate in the profits of 
any such arrangements as he said had been made. 
Donald A. Smith, as the one who first broached the 
question of buying the railway, no doubt accepted 
this view. To admit Farley's contention was to en- 
courage dishonesty among trustees, and also to offer 



HOW THE DUTCHMEN WERE WORKED 159 

a premium on wrong-doing. Therefore Farley was 
repudiated lock, stock and barrel. He finally got 
tired of waiting and entered an action-at-law. For 
thirteen long weary years the suit dragged its way 
through the courts of the United States,^ finally 
reaching the highest judicial tribunal in the Republic 
in 1893, journeying twic6 in the meantime between 
Minneapolis and Washington on legal technicalities. 

When the suit came on for trial in the First Court 
Jesse P. Farley told his story. His allegations were 
clear and distinct — he had agreed to help the Canadian 
syndicate to get the road, to force the Dutchmen to 
sell their bonds, and to use his official position to 
further the scheme. If he told the truth the trans- 
action was not merely a scandal. He had made 
a bargain with the Canadian syndicate altogether 
incompatible with the most elementary principles of 
honesty. 

Farley was corroborated by Mr. Fisher, the president 
of the St. Paul and Duluth Railway. Kittson, who was 
also expected to confirm Farley's testimony, died before 
the case came to trial. Alleged conversations with 
Kittson were, however, given in evidence. On the 
other side J. J. Hill declared there had been no such 
agreement as Farley .suggested. In this he was sup- 
ported by affidavits from Donald A. Smith and George 
Stephen. The court held that Farley's failure to 
prove his claim by a written agreement would entitle 
the defendant to a decision, and, even if there had 
been an agreement in writing, it would have been 
^ Appendix, 19. 



160 LORD STRATHCONA 

improper and illegal on account of the trusteeship 
which Farley was then exercising. But long before 
the final decision of the Supreme Court at Washington 
was given Jesse P. Farley had gone to that bourne from 
whence no traveller returns. Donald A. Smith, J. J. 
Hill, George Stephen, and the heirs of N. W. Kittson 
(all Canadians) from now on, remained in peaceable 
possession of the property. 

Donald A. Smith, George Stephen and J. J. Hill 
continued in intimate business relationship through 
all these years. The St. Paul, Minneapolis and 
Manitoba Company became one of the trunk lines of 
the western states under another name, reaching out 
its arms to the Canadian west at three or four points. 
St. Paul and Minneapolis and Winnipeg became great 
tributaries to this sytem, resulting in an enormous 
accretion of wealth by the original syndicate which 
had obtained possession of the rights of the Dutch 
bondholders. No wonder Jesse P. Farley wanted his 
share, when he saw, as the years rolled by, the colossal 
fortunes that he had passed over to the Canadian 
quartette. In twenty-seven years Donald A. Smith, 
J. J. Hill and their associates in this venture received 
$413,000,000 (_£82, 600,000) interest bearing securities, 
exclusive of annual dividends in the meantime, as the 
result of the railway speculation that Donald A. Smith 
outHned to J. J. Hill at " The Cottage " in Ottawa 
in 1876 — the foundation of these colossal figures being 
the payment of $6,000,000 (^1,200,000) to Dutch 
bondholders borrowed from a bank of which Donald 
A. Smith was a director, and afterwards repaid by a 



A RAILWAY ELDORADO 161 

new issue of bonds. And the Dutchmen still have a 
vivid recollection how in buying those bonds they 
figuratively had gone down from Jerusalem to Jericho. 
From a memorandum prepared for the Interstate 
Commerce Commission at Spokane by Attorney Brooke 
Adams, grandson of John Quincy Adams, one of the 
great fathers of the American Republic, these figures 
show the amounts of interest-paying securities divided 
between Donald A. Smith, J. J. Hill and their associates 
in less than thirty years. 

1879 $15,000,000 

1882 2,000,000 

1883 9,000,000 
1888 2,000,000 
1890 4,200,000 

1892 4,125,000 

1893 2,000,000 
1898 30,000,000 

The last item was issued in the form of Ore certificates ; 
1,500,000 certificates of $100 each, the market value 
of each certificate then being $90. 

The syndicate owns a vast area of very high class 
iron ore in Mesaba county in the state of Minnesota, 
secured partially by purchase out of the earnings of the 
railway company, the balance in the land grant that 
formed part of the security of the Dutch bondholders. 
The Company has a perpetual contract with the 
United Steel Corporation for the full run of the ore 
in these mines, furnishing a source of wealth for 
generations, by itself an Eldorado. 



1898 


$28,000,000 


1899 


13,500,000 


1899 


6,750,000 


I90I 


30,750,000 


1905 


41,000,000 


1906 


84,000,000 


1906 


135,000,000 



XVII 

The danger to the state — Loading the dice — Louis Riel still a factor 
— Blake's resignation — Moments never to be forgotten — Blake's 
farewell to Canada. 

In inverse ratio, but to a corresponding degree, just 
as the friends of the syndicate in Parhament secured 
the support of this now enormously powerful corpora- 
tion in the country, so were those opposed to the 
demands and methods of the syndicate marked out 
for political extinction. These members of the 
Commons were followed to their constituencies, and 
there found themselves opposed by candidates whose 
election expenses were paid from some outside source, 
and paid on a most liberal scale. Not a few were 
unable to overcome such influences among their 
hitherto faithful constituents. The Opposition was 
apparently doomed to be as helpless in the country 
as it was in the House. Many estimable, high-minded 
and able representatives in the House of Commons 
were forced out of public life for no other reason than 
that they had been faithful guardians of the public 
interests. The Company which had been incorporated 
by Parliament was fast becoming its master — it had 
already become a menace to the state. The dragon's 
teeth so blindly sown in 1880 were bringing forth a 

terrible harvest. 

162 



AN ADMISSION BY ONE WHO KNEW 163 

For reasons that need not be particularized, Duncan 
Mclntyre, one of the original members, withdrew from 
the syndicate. He was opposed to the persistent 
interference by the Company with the Government 
of the country. He had some notion of fighting the 
question out on the floor of the House of Commons, 
and made known his wishes to the Liberal leaders. A 
vacancy occurring in an Ontario constituency at this 
time offered an opportunity. The writer presented 
Mr. Mclntyre's name to the Liberal convention, and 
he was accepted as the candidate. Mr. Mclntyre was 
in the far west when he received word about his 
nomination. The Government issued the writ and 
hurried on the election in a most unusual manner. 
Mr. Mclntyre, although he engaged a special train to 
carry him over two thousand miles, only reached the 
riding the day of the election. All the forces of the 
syndicate were thrown against him, the constituency 
was flooded with railway contractors and money, and 
Mr. Mclntyre was defeated. In a conversation in the 
local hotel when the disappointing returns came in, 
Mr. Mclntyre turned to the writer and said : " You 
will never know the force of the influences you are up 
against. Canada is paying an awful price for being 
ruled by my former associates." 

The general election campaign of 1887 was marked 
with more than usual bitterness. It had in many ways 
ceased to be political, and had become personal. This 
particular phase was no doubt due to the necessity of 
publishing the names of the members of Parliament 



164 LORD STRATHCONA 

who had been participants in the distribution of the 
pubhc lands. The new Franchise and Voters' List 
Act, modelled, it was alleged, after the British Act, 
passed in the session of 1885, and came into operation. 
The Revising Officers in all the fighting ridings were 
extreme partisans. Liberals were heavily handicapped 
in endeavouring to secure their rights. It is a sordid 
tiresome story, and but one or two illustrations will 
suffice. In the constituency represented by Edward 
Blake, the Liberal leader, the discovery was made a 
few days before the final revision that 165 Liberal 
voters had been omitted from the lists. In a neigh- 
bouring constituency among many flagrant errors was 
the name " B. C. Church " on the list. Reference to 
the assessment roll showed the property to be a church 
belonging to the Bible Christian denomination. The 
Revising Officer refused to remove the name when the 
matter was presented to him, because " he " had 
not been served with a formal notice that application 
was to be made to remove " his " name from the list. 
At the election " B. C. Church " subsequently voted. 
He had not been seen in that district before, nor has 
he ever been heard of since. 

When the Voters' Lists were received from the 
Government printing bureau, in many of the con- 
stituencies it was found that in the doubtful ridings 
numbers of well-known Liberals had been omitted and 
were therefore unable to vote. There had been 
added to several Ontario constituencies under the 
recent Franchise Act, tribes of Indians as voters. 



A NARROW MAJORITY 165 

In one of these ridings which had been represented 
hy Liberals for many years, the night before the 
election, what purported to be a Proclamation from 
Her Majesty, Queen Victoria, was distributed through- 
out the Indian reserve with a great flourish of trum- 
pets, commanding the Indians to vote for the Tory 
candidate. 

In the province of Quebec the Government had no 
easy time. The execution of Louis Riel for partici- 
pation in a second North-west rebellion had given 
rise to a Nationalist party amongst the Government 
supporters, who professed to believe that Riel was not 
punished so much for the second rebellion, as to 
placate the Orangemen for the murder of Thomas 
Scott in the first outbreak. These candidates for 
Parliament publicly pledged themselves to vote against 
the Government on any motion of want of confidence 
that might be introduced in the first session. With 
the exception of the western territories, the elections 
throughout Canada were simultaneous, and the result, 
counting the Nationalists as against the Government, 
gave Sir John A. Macdonald a majority less than the 
double figures — a majority that would soon cease to 
exist if the Liberals could carry two or three of the 
Prairie constituencies. 

Mr. Edward Blake was physically exhausted by the 
labour of the campaign, but otherwise seemed in 
excellent spirits. The day following the election he 
told the writer that, if it was to be a very small majority, 
he preferred that it should be with the Government 



166 LORD STRATHCONA 

rather than with him, as his success would be the more 
complete in the near future. Full of hope, a party 
started for the west to assist in the elections in the 
territories. When we reached Winnipeg, however, 
we received the amazing news that Edward Blake, 
previous to leaving home for a much-needed rest, had 
publicly announced his resignation as leader of the 
Liberal party, pending his early withdrawal from the 
House of Commons. From a party standpoint the 
immediate effect was staggering. A good fight was 
put up by the opponents of the Government in the 
Prairie constituencies, but the Liberal candidates were 
buried under railway and official influences. Things 
were done by the Government supporters that would 
never have been attempted had they known that 
Edward Blake would be in his accustomed place at the 
head of the Liberal party in Parliament. They knew 
that for a brief while, at least, the Opposition forces 
at Ottawa would be disorganized by Blake's resignation, 
and they therefore took risks they would not otherwise 
have indulged in. This was where the first effect of 
Mr. Blake's resignation was felt by the Liberal party. 
I saw Mr. Blake on his return home. During 
several years of very intimate political association he 
had given me his unreserved confidence. In the 
strain of the campaign I had taken complete charge 
of his confidential correspondence. I knew his aspira- 
tions, his hopes and his determination to model a 
Government in the Dominion on the lines of the 
loftiest ideals of British Parliamentary traditions. It 



GIVING UP THE FIGHT 167 

was a prospect worth living for. Now the pitcher 
was broken at the fountain. He was sitting in his 
Hbrary when I entered. In this room he had often 
explained to me his hopes for the future of Canada, 
his fears of the constant struggle for her birthright. 
He had repeated frequently that, much as he desired 
it, he would never assume power unless by the free 
and unpurchased will of the electors. Here, also, I 
had met Mr. Justin McCarthy, and in discussing the 
question of Home Rule he more than hinted at the 
great service Mr. Blake could render the cause if he 
would consent to enter Westminster. But Mr. Blake's 
reply invariably was : " My life's work is here." As I 
grasped his hand on this occasion he simply pointed 
to a chair. For a moment the silence was intense. 
Then he said : " I know you are surprised. I came to 
this decision alone. My life is too valuable and my 
time is too short to further engage in the useless 
struggle with the demoralizing influences in the public 
life of this country which are the direct outcome of 
the work of the syndicate. You will not live to see 
the end. It will take two generations of fighting to 
rid politics of its effect, no matter who is in power. 
It is beyond me." 

The question of the resignation was beyond argu- 
ment. There may have been secret regret, but there 
was no turning back. Nearly thirty years have rolled 
by since then. Possibly Edward Blake was a pessimist 
in some things, but he loved his native land with a 
superlative love. He saw nothing ahead save the 



168 LORD STRATHCONA 

assertive power of private wealth, accumulated at the 
cost of the state. And his prediction of " two 
generations " bids fair to be realized. His withdrawal 
from the leadership was a crushing blow to his party. 
In his native province the most trying experience he 
had to endure was the sudden solicitude by his political 
opponents for his welfare. The Liberal party, in their 
bitter resentment at his withdrawal, forgot the twenty 
years of unwearied and unflinching struggle in the 
cause of good government that Edward Blake had 
given to Canada. His self-sacrifice, his fruitless labour, 
his resignation and its cause, must ever rank as one of the 
greatest tragedies connected with Canadian politics. 

In an official letter to the people of Canada, Edward 
Blake thus expressed himself upon the situation at a 
later date, with lamentation and hope that may well 
be remembered now— 

" It has left us with lowered standards of public 
virtue and a death-like apathy in public opinion ; with 
racial, religious and provincial animosities rather in- 
flamed than soothed ; with a subservient Parliament, 
an autocratic executive, debauched constituencies and 
corrupted and corrupting classes ; with lessened self- 
reliance and increased dependence on the public chest 
and on legislative aids, and possessed withal by a 
boastful jingo spirit far enough removed from true 
manliness, loudly proclaiming unreal conditions and 
exaggerated sentiments, while actual facts and genuine 
opinions are suppressed. 



LAMENTATION AND HOPE 169 

" It has left us with our hands tied, our future 
compromised, and in such a phght that, whether we 
stand or move, we must run some risks which else we 
might have either declined or encountered with greater 
promise of success. 

" Yet let us never despair of our country ! It is a 
goodly land ; endowed with great recuperative powers 
and vast resources as yet almost undeveloped ; inhabited 
by populations moral and religious, sober and indus- 
trious, virtuous and thrifty, capable and instructed — 
the descendants of a choice immigration, of men of 
mark and courage, energy and enterprise, in the breasts 
of whose children still should glow the sparks of those 
ancestral fires. 

" Under such conditions all is not lost. ' Though 
much be taken much abides.' And if we do but wake 
from our delusive dreams, face the stern facts in time, 
repair our errors and amend our ways, there may still 
remain for us, despite the irrevocable past, a future, 
if not so clear and bright as we might once have hoped, 
yet fair and honourable, dignified and secure." 



XVIII 

Muzzling the Press — Donald A.'s fear of criticism — Buying up the 
Globe shares — Unsuccessful eflForts at prostitution of the Press — 
Personal admission by Lord Strathcona. 

Following the loan of $30,000,000 by Parliament to 
the syndicate, the Liberal Press made an appeal to 
the corporation, now that the resources of the country 
were again called upon for assistance, to cease from 
active participation in the public life of the Dominion. 
The Toronto Globe, recognized as the leader of Liberal 
journalism, was particularly insistent in demanding 
the withdrawal of the Canadian Pacific forces from 
the political arena. Donald A. Smith and his associates 
writhed under this criticism, as well as the appeals 
to the honour of the members of the syndicate. A 
determination was then arrived at to attack Liberal 
journalism in some signal and effective manner. 

It had long been evident that any journalist ven- 
turing to attack the syndicate was duly noted. A 
" jolly good fellow " was placed in charge of the Press 
department of the railway. To him was left the 
responsibility of distributing favours, railway passes, 
and printing contracts. But if journalism could not 
be taught the error of its ways by conciliatory methods, 
then it must be made to feel the iron hand in another 

manner. Donald A. Smith was particularly susceptible 

170 



MUZZLING THE PRESS 171 

to newspaper flattery or criticism. In regard to the 
latter there were many holes in his armour that might 
be unpleasantly pierced. As his years increased he 
became even more sensitive on this score. His remark 
to a prominent Canadian who was receiving a good deal 
of newspaper attention years later in London, " Your 
name has no right to be there. It should be mine," 
was heard too often to be forgotten. The constant 
criticism of the leading organ of the Liberal party 
gave rise to the determination to silence it at any cost. 
The founder of the Globe, George Brown, was dead, 
the deeply mourned victim of assassination, the 
work of a madman. The Globe was formed into a 
company, odd shares being held in different parts of 
the country. But the dividends were not such as to 
justify very great anxiety on the part of the holders 
to retain them as an investment. Secretly Donald 
A. Smith's agents bought up all the shares that were 
available. The probate of his Will shows that his 
estate holds $100,000 (_^20,ooo) worth of the Globe 
stock. He learned, however, that the controlling 
interest in the Globe was held by Nelson & Sons, 
publishers, Edinburgh, as trustees for the widow of 
the great founder of this journal. Mrs. Brown was a 
sister of the Nelsons. Donald A. Smith instructed his 
representative to proceed to Edinburgh and purchase 
Mrs. Brown's interest at any cost. The sum offered 
was far in excess of the then value of the shares, but 
the object of the prospective purchaser was only too 
evident — to silence one of the oldest and the most 
influential exponents of public opinion in Canada— to 



172 LORD STRATHCONA 

prostitute the reputation of a great newspaper that 
for fifty years had stood in the forefront of the battle 
for the rights of the people, and was never known 
either to be silent or to advocate any cause from 
unworthy motives. 

There could be but one reason why the syndicate 
wanted to get possession of the Globe — to drag into 
the dust this organ of public morality for its own 
interested ends. But again, as in the case of Alexander 
Mackenzie, the syndicate ran up against a descendant 
of the old Covenanters. The reply that was received 
settled the matter for that time. Mrs. Brown, true 
to the memory of her distinguished husband, sent an 
account of what was on foot to Canada, suggesting 
that, to provide for contingencies in the future, it 
might be advisable that the controlling interest in the 
Globe should be in the hands of the Liberal party. 
She suggested what she considered a fair price for her 
interest, and it was learned afterwards that this was 
far below the sum that had been offered by the agent 
of Donald A. Smith. 

When the news of the prospective transaction was 
received in Toronto, the effect was startling. The 
party was struggling along, ill-supplied with funds for 
ordinary organization, but there could be no delay 
about a matter so vital as this. Sir Richard Cartwright, 
Hon. A. S. Hardy, Minister of Crown Lands in the 
Ontario Government, Hon. George A. Cox, all now 
deceased, Mr. Robert Jaffray, now senator, and the 
writer discussed the situation. Messrs. Cox and 
Jaffray offered to subscribe half the amount necessary, 



A PLOT THAT FAILED 173 

if the balance could be raised elsewhere. It fell to the 
lot of the writer to visit Liberals in different parts of 
the Dominion for the purpose of getting the balance. 
The purchase was satisfactorily completed, and the 
newspaper was placed beyond the possibility of falling 
into the possession of the syndicate during the present 
generation. 

Thirty years afterwards, in the course of a conver- 
sation with Lord Strathcona on journalistic work and 
the influence of the Press, he said to the writer : " Do 
you know that once I came nearly being a newspaper 
man myself ? " I replied that I was aware he had 
tried to get possession of the Globe in the 'eighties. 
" Ah yes, you know, but I would not have changed 
its politics, except as regards the Canadian Pacific. 
It was very abusive then. I wanted it very much. 
How did your party raise the money to get it ? " 
I told him about our determination that he should 
never have it, and my own personal efforts in collecting 
the money. He added : " So it was you, so it was you. 
And that I should only know it now ! But I would 
have had it within a month if you had been much 
longer. The Globe was very insulting, very personal. 
It treated us as if we were robbers." The writer will 
not deny that there was no possibility about the 
language of that day being misunderstood. The 
friends of the syndicate blamed us for the bitterness 
that was expressed. Our justification was that we 
were fighting against great odds, with no personal 
ends to serve, and only protecting our country's 
heritage in the face of all but insuperable difficulties. 



XIX 

Once more amid old associations — Political predilections — Disallow- 
ance on Manitoba's legislation — Driving the golden spike — 
Fighting against slavery — What Manitoba paid for liberty. 

After the elections of 1887 Donald A. Smith found 
himself again in the House of Commons. Seven years 
had elapsed since his forced retirement from Parlia- 
ment by the decision of the Supreme Court. There 
were still many Tory members in the House who 
were present on that memorable occasion in 1878, 
when he was so shockingly insulted by the Tory party.^ 
Now he appeared as their associate and the dutiful 
follower of their leader. In glancing around he could 
see that not a few of those who sympathized with him 
on that occasion were no longer in the House, and he 
could reflect how much of the money of the syndicate 
had gone, secretly, to ensure their absence. In looking 
at the supporters of the Government he could recog- 
nize some who had taken their part in the insulting 
epithets thrown at him then, and remember that not 
a little of the money which he controlled had gone 
to keep them in their seats. The whirligig of time 
had certainly brought great changes ! Now he was 
forced to be on terms of intimacy with bitter personal 
enemies, and to publicly repudiate those who a few 
years previously were his personal and political friends. 

^ Appendix, 4. 
174 



COMPLETING THE RAILWAY 175 

Whatever was thought of the reasons which had 
actuated him in deserting the Tory party in 1873, 
there was no doubt as to why he was supporting the 
Tory party in 1887. More than once in the years 
immediately following 1880 was he reminded of the 
changed circumstances, as well as of the opinions his 
present allies had expressed of him on that well- 
remembered occasion. But to Donald A. Smith's 
credit be it said he never lost his temper during the 
nine years he remained in the House, amid the many 
aggravating and annoying reminders of the past. His 
philosophical disposition to accept the inevitable never 
deserted him. His standard of political honour was 
not high, but it served. To him it was always his first 
duty to consider his personal interests, and he could 
comfort himself with the reflection that he was no 
worse than many who were sitting around him. Not 
a few were there who had been and were now accept- 
ing substantial favours from him as a return for the 
enactment of legislation which the syndicate desired 
from time to time. 

In November, 1887, four years earlier than the 
agreement stipulated, the transcontinental railway 
was completed to the Pacific coast. It had duly 
passed out of the possession of the Canadian people 
and into the sole control of a few magnates, none of 
whose personal wealth had been expended in the 
construction of the line. Very properly the master 
mind of the syndicate, the genius who had guided and 
guarded them through the wilderness of difficulties. 



176 LORD STRATHCONA 

never losing heart or failing in courage, and had 
brought them at last to the rainbow's foot, was 
selected to drive the golden nail in the last rail which 
connected the east with the glorious west. In after 
years Lady Strathcona used often to wear, as one of 
her most treasured possessions, the beautiful diamond- 
studded spike which the grateful syndicate presented 
to her on this auspicious occasion. By this act all the 
members of the syndicate, and those who had become 
associated with the enterprise, publicly acknowledged 
Donald A. Smith's chief place in the great organization. 

The prairie section of the railway had only been 
in operation a short time when the west resounded 
with the wails of the farmers against the excessive 
rates that were being charged for carrying their 
produce to market-centres. By the terms of the 
original agreement, a loophole was left whereby the 
Company could do just about as it pleased, and there 
was no adequate protection for the public. Repre- 
sentations were made at Ottawa for relief, but the 
syndicate, like Shylock, pleaded the terms of the bond. 

The Legislature of Manitoba, however, had become 
an important body, and the Government was forced 
to pass legislation incorporating companies for con- 
structing other railways throughout the province. 
All these Bills were disallowed with commendable 
promptitude by the Ottawa Government, and the 
impression took possession of the public mind of the 
province that the Manitoba Cabinet also was the tool 
of Donald A. Smith and his associates, and was less 



A PROVINCE IN ARMS 177 

willing to protect the struggling agricultural com- 
munity than to interfere with the schemes of the 
syndicate. The result was the defeat of the Norquay 
Cabinet. They were followed by a party openly 
avowing a policy of constructing railways within the 
province regardless of disallowance by the Federal 
administration at Ottawa. The public declared that 
they would have competitive railways at the cost of 
secession from eastern Canada, if necessary. The 
people won. Disallowance ceased. Then a similar 
agitation took place in the territory outside Manitoba. 
When the Laurier Government came into power, in 
order to secure an amicable reduction of freight or 
goods-rates from the railway, several million dollars 
additional subsidy was granted to the Company. It was 
fully realized that the shackles the " Empire-Builders " 
were forging on the general public could not be borne 
without entailing conditions of absolute slavery. 

The citizens of Manitoba now resolved to firmly 
resist any further extortions imposed upon them by 
Donald A. Smith's railway enterprises. A charter 
was granted by the legislative assembly of the 
province to a company to connect with the Northern 
Pacific Railway of the United States — the rival of 
J. J. Hill's and Donald A. Smith's American line. It 
was found necessary to make a level crossing over the 
syndicate's railroad in order to reach Brandon. The 
employees of the Canadian Pacific company stood 
guard over their line. But several hundred farmers 
and citizens of Winnipeg appeared, armed with rifles, 

M 



178 LORD STRATHCONA 

rushed the position, tore up the Canadian Pacific rails, 
and protected the navvies while the diamond crossing 
was laid. They held the fort for several days, threat- 
ening violence on any attempt to interfere with the 
new railroad. The syndicate finally realized, although 
the courts would doubtless have assisted them, 
the utter uselessness of engaging in a contest with 
a province so unanimous in opposing their monopoly. 
They retired to await developments. 

Waiting was a game at which the syndicate was 
past-master. 

The astute " Empire-Builders " had another way of 
" getting even " with the people of Manitoba. They 
were at least familiar with the spirit of Byron's 
Mazeppa — 

" For time at last sets all things even — 
And if we do but watch the hour, 
There never was yet human power 
Which could evade, if unforgiven, 
The patient watch and vigil long 
Of him who treasures up a wrong." 

The following year the wheat crop of the province 
was very poor, and much of it was damaged by an 
early frost. The farmers of the prairies had not then 
learned, as they afterwards accidentally discovered, 
that wheat can be sown before the spring frost is out 
of the ground, and thus secure the maturing of the 
grain before the early autumn frosts. At this time 
the Winnipeg grain-dealers could only find a market 
for the damaged wheat in eastern Canada. The 
syndicate's time had come ! No lower quotation could 



MAKING THE FARMER PAY 179 

be secured from the railway for carrying the grain to 
the great lakes, from whence cheap transportation 
could be had by water, than at the rate of twenty-eight 
cents (ij-. lid.) per bushel, equivalent to about forty- 
eight cents (is.) per hundredweight. Therefore, the 
buyers could only pay the farmers thirty-five cents 
(ij. 6d.) per bushel for their grain. The carrying 
distance from Winnipeg to the lake port was less 
than 600 miles over a railway that had cost the Cana- 
dian Government $30,000,000 (^6,000,000), and which 
had been passed over to the Pacific Railway syndicate 
as a free gift by Parhament. At the time the Canadian 
syndicate was making this charge for carrying Canadian 
grain, Donald A. Smith's American railroad was carry- 
ing the product of American farms at less than half 
the rate for the same distance. 

This fearful bleeding of the life's blood of the toilers 
of Manitoba continued until Wilfrid Laurier came 
into power. But before this occurred ten years had 
elapsed. This was the price that the struggle for 
liberty, or in fact the right to a fair reward for their 
hard labour, cost the people of Manitoba. They had 
ventured to cross the path of the Juggernaut that was 
rolling across the Canadian prairies. 

Very early in the last session of that Parliament 
(1896), Donald A. Smith announced his intention of 
retiring from the House of Commons. The great 
head of the Tory party for thirty years. Sir John 
Macdonald, had passed over to the Great Majority 
amid the universal lamentations of his faithful followers. 



180 LORD STRATHCONA 

The third reorganization of the party had taken place 
since Sir John's death. The Premier could not be 
said to have much in common with the head of the 
Pacific syndicate. Donald A. Smith was quite willing 
to use him, as he had used other instruments, but Sir 
Mackenzie Bowell had never forgiven him for his 
desertion of the party in 1873. Thus there was more 
likelihood of the First Minister being in the way than 
otherwise. This fact was made abundantly evident 
during the latter part of the session. There was then 
nothing in either the intellectual calibre, or the social 
standing of the remnant of the great party that had 
ruled Canada for eighteen years, to attract Donald A. 
Smith. He had ceased to take much interest in the 
proceedings in the House. The announcement, there- 
fore, that he purposed retiring was looked upon by 
many as perfectly natural. 

The rank and file of the Tory party heard of his 
proposed withdrawal from Parliament with mingled 
feelings. They were not sorry he was leaving, but 
they wondeied if his withdrawal from the House was 
indicative of a move in the direction of the rising star 
of Wilfrid Laurier. It was acknowledged that the 
political barometer distinctly indicated that but a 
brief period would elapse before the Liberals would 
be in power, with Laurier as Premier. And it was 
equally evident that the Tory party had reached a 
point when cohesion was impossible. For the time 
being the public was utterly in the dark as to Donald 
A. Smith's ultimate intentions. One thing only was 



INTRODUCING YANKEE MANAGERS 181 

certain, and that was, whatever course he might 
adopt, there would be only one paramount con- 
sideration. But, as in his early Parliamentary career, 
he was keeping his own counsel. 

In the meantime history was being made. The 
Canadian Pacific Railway in fifteen years had developed 
into one of the most stupendous corporations that the 
world has ever seen. The ramifications of its business 
extended throughout America, Europe, Asia and 
Australia. In reality its interests had encircled the 
globe. The members of the original syndicate had 
amassed such wealth that their own affairs required 
undivided attention. The methods of managing the 
railway, and also of retaining that influence in political 
circles which they regarded as a necessity, demanded 
other experts. To meet this situation officials were 
imported from the great railroads of the United 
States to take the management of the railway. No 
one in Canada was regarded as sufficiently competent. 
Men were required who had experience in extensive 
railroad control, as well as in the manipulation of 
American politicians. A Parliamentary humourist, 
and also one of the warmest friends of the Company 
in the House, justified the policy of the syndicate by 
jocularly inquiring " What can a draper accustomed 
to measure cotton by the yard, or his companion, 
whose principal calling in life has been to trap musk- 
rats in the North-west, know about railway manage- 
ment ? " Practical experience and up-to-date methods 
were necessary for the most obvious reasons. 



182 LORD STRATHCONA 

In a half-apologetic manner the syndicate had asked 
financial men to accept seats on the board of directors. 
The new officials suggested that, with the presence of 
Donald A. Smith in the House of Commons again, 
it was time to make an advance all along the line. It 
was also opportune that directorships should be given 
to members of the House of Commons. And instead 
of treating with the rank and file of either of the 
political parties in the House, the services of party 
whips should be engaged as far as possible. By 
securing their co-operation, more than one object 
could be attained. It might be possible through 
their infiuence to prevent the nomination of certain 
candidates for the House, who, so far, had failed to see 
eye-to-eye with the syndicate, especially one on the 
Liberal side of the House, who had been most insistent 
in declaring that it might be necessary for a Royal 
Commission to inquire into the political actions of 
the syndicate. The syndicate had no longer any 
thought of being a suppliant at the feet of Parliament. 
Its mastery might now be asserted. 

There was surely no reason why members of the 
Board should not be secured from among those 
occupying the highest positions in the gift of the 
people. With an eye to the future this policy was 
agreed upon, and in carrying it out excellent results 
were obtained. Donald A. Smith had the satisfaction 
of seeing both a Speaker of the House, and a First 
Minister of the Crown on his board of directors. 
With such aids it would be surprising if any legislation 



LOOKING FOR FURTHER PLUNDER 188 

that might be desired was looked for in vain. With 
such a public acknowledgment of their influence in 
the state one would have thought the syndicate might 
rest on their laurels. They had been given all they 
demanded, and they had demanded much. But there 
seemed no satisfying their ever-recurring pangs of 
hunger. Their appetite was stupendous. So once 
again they set to consider whether there was not 
something else in the possession of the people of 
Canada that they could get their hands on. Among 
them were those who had no narrow views as to the 
limits of exploiting public property, provided it could 
be done with some outward pretence of furthering 
general public interests, or for which some alleged 
Imperial necessity could be used as a cloak. 



XX 

" And Ahab spake unto Naboth " — Looking for another grab — The 
Intercolonial railway — An unsatisfactory Prime Minister — Sir 
Mackenzie Bowell — The " nest of traitors " — A successful cabal, 

" And Ahab spake unto Naboth, saying, Give me 
thy vineyard, that I may have it for a garden 
of herbs, because it is near unto my house : 
and I will give thee a better vineyard than it ; 
or, if it seem good to thee, I will give thee the 
worth of it in money. 

" And Naboth said to Ahab, The Lord forbid 
it, that I should give the inheritance of my 
fathers unto thee. . . . 

" And Jezebel his wife said unto him, . . . 
I will give thee the vineyard of Naboth the 
Jezreelite." 

Under the original agreement with the Government 

the Pacific Railway syndicate received a bonus of 

$25,000,000 (^5,000,000), 25,000,000 acres of selected 

lands which will realize the Company $350,000,000 

(^70,000,000), and portions of the main line of the 

Pacific Railway upon which the people of Canada 

had expended nearly $30,000,000 (^6,000,000). In 

addition to all this, Donald A. Smith and his associates 

had borrowed from the Government $30,000,000 

(j^6,ooo,ooo) in 1883, and a further $15,000,000 

(yr3, 000,000) in 1884. If the Canadian pubHc had 

184 



PLANS TO STEAL A RAILWAY 185 

not hy this time become so accustomed to the man- 
oeuvres of the Company as to be too apathetic to 
resist them, the fact that they were once again looking 
around for yet another dainty dish to set before their 
king, might have caused surprise as well as uneasiness. 
Inasmuch as it did not, shows how completely the 
people were then under the heel of the Canadian 
Pacific syndicate. 

The Canadian Government owned a railway, 1500 
miles long, running from Quebec to two Atlantic 
ports — St. John and Halifax — the route lying through 
the Maritime Provinces. This line had cost Canada 
about $65,000,000 (^13,000,000). In its inception 
it was looked upon more as a political necessity than 
as a business investment. In fact the construction 
of the line was one of the terms of the Confederation 
of the provinces. It can scarcely be claimed that the 
management had always been business-like, the result 
being that it was a constant bill of expense to the 
people of Canada. Almost every year Parliament was 
asked to vote large sums of money for maintenance, 
and of late it had been under the political control of 
a Minister who was an ardent supporter of everything 
that the syndicate wanted. As if in preparation for 
subsequent events, little had been left undone to 
make the public dissatisfied with Government owner- 
ship of the line. 

Donald A. Smith's presence in the House of Com- 
mons again was coincident with influences being 
brought to bear on the Minister in charge, whereby 
the Canadian Pacific Railway was given free running 



186 LORD STRATHCONA 

powers over one-fifth of this line, with full permission 
to compete with the Government trains for local 
traffic. Ahab coveting Naboth's vineyard was a 
righteous desire in comparison with the longing eyes 
that the syndicate set on this Government railway. 
Ahab was willing to pay for the land that he wanted, 
but in this case the great corporation was looking for 
a political Jezebel to let them have the line as a gift. 
It was their intention that the Canadian exchequer 
should not get anything out of the transaction. It 
might be necessary to give certain politicians practical 
proof of the value of their services, but that was a 
detail which could easily be provided for out of the 
sale of the securities for which the property could be 
bonded. 

For several reasons, 1894-5 was considered an 
opportune time to commence an agitation for the 
disposal of the Intercolonial Railway to the Canadian 
Pacific Company. The public was told with great 
seriousness that the railway could never be made to 
pay under the management of a department of the 
Government. The annual votes of Parliament were 
quoted to show the burden of expense that it had 
already proved. These grants might fairly be taken 
as an indication of what the future had in store for 
Canadian taxpayers. 

The newspapers subject to the influences exercised 
by the Pacific Railway supported the suggestion to 
get rid of the " incubus." The Maritime Provinces, 
where the people are more directly interested, were the 
first to take alarm. But it was suggested that a 



MEASURING UP THE PROSPECTS 187 

Canadian Pacific management would bring about 
many necessary reforms, making the line of greater 
local service, and they were also assured that it would 
then be the main line of the great transcontinental 
system. Apparently the general public were lulled 
into a sense of false security, and the subject ceased 
to engage special interest, although the Liberal Press 
strongly denounced the proposal as inimical to the 
best interests of the country. 

The unparalleled success with which the syndicate 
had so far manipulated Canadian politicians, had long 
since given them the necessary courage to pursue the 
even tenor of their way, utterly regardless of the views 
that the Liberal party might entertain on the ques- 
tion. But they were well aware that there would 
have to be a change in the personnel of the Govern- 
ment, before getting their covetous desires realized in 
respect to the Intercolonial Railway. 

Sir Mackenzie Bowell was First Minister at this 
time. He succeeded to the Premiership by right of 
seniority, on the death of Sir John Thompson. He 
was in no sense regarded as belonging to a brilliant 
order of statesmen. Yet amid corrupt political 
associations he preserved a reputation for sterling 
honesty. It might be truthfully said that he was 
moulded on exceedingly narrow lines. He was singu- 
larly intolerant towards every one not attached to the 
Tory party. This was probably due to his early and 
continued association with the Orange Order. The 
Order was a quasi political-religious association, essen- 
tially Protestant, but far from being essentially religious 



188 LORD STRATHCONA 

in its character. Its members professed the belief 
that the Order was the bulwark of Protestantism. But 
the outlook would have been very discouraging for 
Protestantism if its future depended upon such a 
broken reed. Although originally founded to per- 
petuate the memory of the Battle of the Boyne, and 
therefore purely northern Irish in its character, in 
Canada it numbered among its adherents almost every 
nationality and colour. Even Indians were initiated 
into the mysteries associated with membership during 
that brief period when the tribes were allowed to vote 
for Parliamentary candidates between 1887 and 1896. 
The Order had long been a force in the Tory party, 
but for more than forty years it had failed to furnish 
the party with a single politician above mediocre 
ability. Nevertheless Sir John Macdonald had always 
acknowledged the head of the Order for political prefer- 
ment. For many years the Grand-Master's position 
was associated with a portfolio in Tory Cabinets. 

Sir Mackenzie Bowell was strong in two extremes 
of character — admiration and hatred. His admiration 
for Sir John Macdonald, and the reverence that he 
entertained for the memory of that great personality 
was to him a religion. His hatred for the Tupper 
family, although one was a colleague in his own 
Cabinet, and the other was his High Commissioner in 
London, also partook of the nature of religious fervour. 
Upon Sir John Macdonald's reputation there was one 
stain, at least — that growing out of the Pacific scandal 
of 1 873. And it was on this account that Sir Mackenzie 
Bowell had never allowed himself to forgive the part 



DRIVING OUT A PRIME MINISTER 189 

that Donald A. Smith had played in that ex- 
posure. In his opinion Donald A. should never have 
been recognized by the party again. This mental 
attitude certainly formed the foundation of an in- 
superable barrier to the realization of the Railway 
syndicate's aspirations to secure the Intercolonial 
Railway as a free gift. 

So far Sir Mackenzie Bowell had not been wanting 
in loyalty to the Pacific Railway syndicate as a corpora- 
tion, but he had been equally emphatic in denouncing 
the desertion of Donald A. Smith in 1872. That he 
would be a party to the proposal to present the Inter- 
colonial Railway as a gift to the syndicate was regarded 
as beyond the range of possibility. Therefore as 
First Minister he must be deposed. How this was to 
be accomplished was a problem. Great care would 
have to be exercised to prevent such a political crisis 
as might precipitate the downfall of the whole party. 
His colleagues were sounded as to the possibility of 
the chief's retirement, and their report was that he 
was determined to remain First Minster until after 
the then-approaching elections. 

Then determined efforts were put forth with the 
object of driving him out. The proceedings at 
Cabinet meetings ceased to be secret. His sugges- 
tions in the Privy Council Chamber regarding the 
policy of the party and the transaction of business 
in Parliament, then assembled, were met with insulting 
laughter and scorn. His recommendations for appoint- 
ments to vacancies in the service were promptly nega- 
tived. No Order-in-Council which he introduced was 



190 LORD STRATHCONA 

passed. For weeks the Executive Council Chamber 
was Httle better than a comic opera. Every time he 
called the Cabinet together it was to receive additional 
humiliation and insult from those whom a stronger 
man would have dismissed at once. Public business 
was at a standstill. All shades of politicians realized 
" that there was something in the wind." Meanwhile, 
Donald A. Smith was flitting to and fro, looking as 
imperturbable and unconcerned as on that memorable 
occasion in 1873 when he first absorbed all the lime- 
light on the scene. 

Within the inner circle it was well known that 
the proposed presentation of the Intercolonial Railway 
to the Pacific Railway was making progress. Like a 
bolt out of a clear sky, the startling information was 
given to the public (1896) that seven members of the 
Cabinet had tendered their resignations to the Premier. 
It was thought by the political Jezebels that if the 
First Minister would look upon this act on the part of 
his colleagues as a hint that he no longer enjoyed the 
confidence of the party, he might be replaced by a 
Premier who would see the Intercolonial Railway 
project through that session. The influence of the 
syndicate practically dominated both the Senate and 
the House of Commons at this time. Days were 
succeeded by weeks, and still the cabal continued. 

Sir Mackenzie Bowell administered the affairs of 
the Government with less than half a Cabinet. He 
declined to notify the Governor-General officially of 
the resignations of his colleagues, although the humili- 
ating political situation was discussed in both Houses. 



THE NEST OF TRAITORS 191 

He sent word to them that if they did not return to 
their portfolios he would advise the Governor-General 
to call on Wilfrid Laurier to form a Government. 
They knew that was an idle boast, and they had only 
to remind him that such an action would bring down 
on his head more bitter maledictions from his own 
party, throughout the country, than had been poured 
out on the traitors of 1873. They refused to return. 
They openly boasted that they " would drive the 
old dog out." At the same time he was referring to 
them in the most public manner as a " nest of 
traitors." 

The most influential personality on the Govern- 
ment side of the House of Commons just then was 
Donald A. Smith. He may not have been admired 
by the rank and file of his party for the time being, 
but they knew his power. One word of encourage- 
ment or sympathy from him and Bowell's Cabinet 
would have been reorganized. The " nest of traitors " 
would have been out, Bowell would have been con- 
firmed in his position as Premier, and then have gone 
to the country with a reorganized and probably a 
fairly strong Cabinet. 

But Donald A. Smith had not forgotten that 
memorable scene in the House eighteen years previously 
when his associations were with the opposite poHtical 
party, and Mackenzie Bowell was one of the most 
active in hurling insults at him across the floor of the 
House. And the consideration might also have had 
some weight, that, if the Bowell Cabinet remained in 
office, the Intercolonial Railway would continue in 



192 LORD STRATHCONA 

the Government possession. There were many reasons 
why the cabal should be allowed to succeed. Donald 
A. Smith was again keeping his own counsel. 

It was evident that the Tory party, which had 
proved invincible for eighteen long years, largely 
through the influences of Donald A. Smith and his 
colleagues, was fast going to pieces. The canker- 
worm had eaten into the body politic and had com- 
pletely destroyed the vitality of the greatest political 
party that Canada had seen up to that date. Sir 
Charles Tupper, who had been in and out of the 
position of High Commissioner, as party needs dictated, 
and whose son was one of the " nest of traitors," was 
sent for, to see if he could not bring about a better 
state of affairs. On his arrival he proceeded to act 
as intermediary between the factions. 

Although Sir Mackenzie Bowell did not hold the 
High Commissioner blameless in the intrigues to get 
rid of him, he gracefully accepted the inevitable, and 
agreed, if the " traitors " would return, to resign the 
Premiership as soon as the session was concluded. 
He also promised that he would then advise the 
Governor-General to send for Sir Charles Tupper to 
form a Government. The Canadian Pacific magnates 
had undoubtedly won. A distinct advance had been 
made in the prospects of the Intercolonial Railway 
passing out of the possession of the Government. 
A Prime Minister who might have stood in the way 
had been deposed. The intriguers knew that some 
Canadian statesmen could be approached, but Mac- 
kenzie Bowell was not among the number. 



XXI 

A satisfactory First Minister — Fishing for forty millions — Sir Donald 
as High Commissioner — Laurier's political strength — Stirring up 
religious strife — Hierarchy recognized by the state — Laurier 
successful — The coming Prime Minister. 

On the accession of Sir Charles Tupper to the Premier- 
ship, coincident with the dissolution of Parliament, 
Sir Donald A. Smith was appointed to the position 
of High Commissioner for Canada in London. He 
had previously been knighted on the recommendation 
of Lord Aberdeen. The announcement that the new 
knight would take up his residence in London as the 
official representative of the Dominion, was received 
with mingled feelings. It was believed that his 
enormous wealth would be freely expended at the 
heart of the Empire in bringing Canada to the front, 
and that he would soon become a not unimportant 
figure in official circles. But at the same time it 
was well known that Donald A. Smith had never taken 
any action in his life that was not the subject of 
cautious calculation beforehand. The routine of the 
London office could have no possible attraction for 
him, nor yet its official character, unless there were 
other considerations. As to whether there were any, 

the public was left to conjecture. In his connection 
N 193 



194 LORD STRATHCONA 

with the politics of Canada Sir Donald A. Smith had 
always carried his cards up his sleeve. It was known 
in an inner circle that he was not adopting on this 
occasion a policy inconsistent with that characteristic. 

The preliminary arrangements for the passing of 
the Intercolonial Railway over to a syndicate in the 
interests of the Pacific Railway had advanced to such 
a point as to justify the London market being sounded 
on the question of bonding the line. The amount 
that it was thought might be raised was between 
thirty and forty million dollars (six or eight million 
pounds sterling) ; the latter figure was finally decided 
upon. The report received by the prospective bene- 
ficiaries in Canada from London was that, with a 
representative in the office of the High Commissioner 
in London who was friendly to the project, all the 
money that was needed could be easily secured. There 
could be no better selection for the position, in the 
opinion of those who wanted to see the project go 
through, than the highly respected original backbone 
of the syndicate, Sir Donald Smith, and, moreover, he 
had long been considered the Ahab in the suggested 
transaction. It was calculated that with forty million 
dollars in cash or Intercolonial Railway bonds, allowing 
a reasonable margin for " expenses " of the character 
that had been necessary in previous Government 
transactions, there would still be over thirty millions 
of dollars for their own pockets. 

This particular syndicate had learned through 
twenty years' association with Canadian politics that 



EMBRACING OFFICIAL LIFE 195 

certain opportunities to those who have power seldom 
come more than once in a lifetime. But when they 
do, the value of services on the second occasion are 
higher than on the first. Those having this matter 
in charge well considered this phase of the question. 
As was said hy Lord Clive, when he heard his offences 
enumerated in the House of Lords, that he was amazed 
at his own moderation ; so certain members of the 
syndicate had reason to measure not a few Canadian 
politicians by their previous illuminating experience — 
expensive lessons, but enduring. They, therefore, 
intended to exercise every care to make sure of their 
own haul out of the sale of the bonds, before handing 
the railroad over to the management of the Canadian 
Pacific. So satisfied was the clique that the oracle 
could be worked that a prospectus was printed, and 
everything arranged to make a public issue. One- 
half of the bonds were to be taken by the syndicate. 

Sir Donald A. Smith found himself in London as 
High Commissioner for Canada — the highest position 
at the disposal of the Dominion Government — the 
official representative of the country to which he had 
emigrated as a friendless lad sixty years before. In 
that western country he had played for heavy stakes, 
both in the western States and in Canada, and he had 
won ; but in the game of chance or skill he had not 
yet won his last trick. He could count upon, as 
the instruments of his will, many men who had ranked 
as brilliant statesmen. Perhaps some in the wider 
field of Imperial politics would have been more careful 



196 LORD STRATHCONA 

of their own honour, and the permanent interests 
of their country. And he had met statesmen in the 
Canadian ParHament whose sense of honour, and love 
for their adopted country's future, had made it 
impossible for him to use them for the advancement 
of his personal interests. 

One wonders whether Sir Donald A. Smith ever 
reflected if all that he had won was worth what 
it had cost. He and his colleagues had gone through 
fire, though not of the sort that purifies. They had 
fought many battles, and had come forth with colours 
flying and ranks intact. What mattered it to them, 
that from the Great Lakes to the Atlantic the country 
was dotted with the political tombstones of those who, 
struggling to protect the public interest, determined 
to hold fast their integrity, never wavering in 
their patriotic belief in the great future of their 
country, ever standing firm in opposing the syndicate, 
had been wiped out of existence ? At this moment 
a Government was in power which was to a greater 
extent his individual creation than any of the several 
with which he had had experience. If this administra- 
tion could be successful at the pending elections, the 
Intercolonial Railway stood a good chance of falling 
into the capacious maw of the great railway syndicate 
which he had brought into existence. What were the 
Canadian electors likely to do ? That was the problem 
that was awaiting solution. Sir Charles Tupper was 
Premier, and if he was successful at the polls, he 
would certainly dominate his Cabinet. He would not 



EFFORTS TO WORK THE CHURCH 197 

tolerate intriguers as Sir Mackenzie Bowell had done. 
No Canadian politicians had better cause to under- 
stand each other than the High Commissioner and the 
First Minister of Canada. They had exchanged con- 
fidences in the early 'seventies such as few men give one 
to the other. They had fought like Kilkenny cats on 
that memorable occasion in the House of Commons 
in 1878 until scarcely the tails of personal reputations 
were left. But Sir Charles Tupper was not Scotch, 
he had a forgiving nature, and had long since forgiven 
the " treachery of 1873." Lord Strathcona, although 
he was Scotch, always pardoned offences if the offender 
would serve him later. With such charmingly diversi- 
fied dispositions it would be a pity if they could 
not agree ! 

Surely the fates were propitious. Wilfrid Laurier 
was leading the Liberals apparently on a forlorn hope. 
The clergy in Quebec, Laurier's own province, were 
believed to be unfriendly, and the Pacific Railway 
organization set to work systematically to inflame the 
Catholic electors against him. The managing director 
of the railway, Mr. (now Sir) Thomas Shaughnessy, 
recently an American citizen, was an ardent adherent 
of the Mother-Church. He could prove his de- 
votion to the Church, if not the earnestness of 
his religion, by his strenuous opposition to Laurier, 
the Liberal, and at the same time keep a watchful 
eye on the interests of the railway. With the 
railway management, as with the operations of the 
syndicate, politics and business had run together for 



198 LORD STRATHCONA 

many years. There was no reason to suppose that a 
little religion should not prove an equally good running- 
mate. 

Another reason actuating the Pacific Railway opposi- 
tion to the Liberal party was the Royal Commission, 
so strongly threatened by influential Liberals, to 
inquire into the political expenditures of the company 
during the preceding fifteen years. But the argument 
advanced to the Catholics why they should vote against 
the Liberal candidates was that Laurier had opposed 
the Remedial Bill which the Government of Sir 
Mackenzie Bowell, at the request of Archbishop 
Langevin, had introduced to Parliament. This mea- 
sure was to re-establish separate Catholic schools 
in Manitoba, which some years previously had been 
abolished by the legislature of the province. It 
seemed probable that, if the passions of the electors 
could be appealed to successfully on religious grounds, 
the syndicate might ensure the defeat of the Liberal 
party, and thus avert the threatened inquiry into the 
Augean stable of political corruption in which the 
syndicate had revelled since 1878. It was a sight for 
the gods — descendants of those who had followed 
John Knox trying to find a hiding-place behind the 
soutane of the Roman Catholic hierarchy. 

The contest was a battle-royal. In almost every 
constituency in Quebec the clergy, moved by common 
impulse, denounced the Liberal candidates.^ To an 
outsider the issue must have seemed inevitable, and 

^ Appendix, 15. 



THE POWER OF THE CLERGY 199 

that Laurier could win in the face of such overwhelming 
odds an impossibility. 

It should be remembered that the French population 
in Canada is truly religious above everything else. 
The late Monsignor Stoke-Robinson told the writer 
many years ago that they are regarded in Rome as 
amongst the most devout in the entire Catholic world. 
They have little use for one of their own faith who has 
too liberal views in religion. Their religious fervour 
demands entire submission to the teachings of the 
Church, and they were not encouraged to discriminate 
between Liberal politics and Liberal Catholicism. 

The Church had been accustomed from time 
immemorial to take a more or less prominent part 
in the politics of the country. Under the grand- 
monarque, Louis XIV, the right of the Church to a 
seat in the governing council was acknowledged, and 
the authority of the clergy in the Government of the 
country was unquestioned in the early days of British 
rule, as in the treaty ceding Canada to Great Britain 
their rights were specially recognized. When emis- 
saries from the American revolutionists in 1775 en- 
deavoured to seduce the French Canadians from their 
allegiance, the influence of the clergy, without ex- 
ception, was exercised in favour of the British Crown ; 
and on the occasion of the rebellion in 1837, the clergy 
denounced the action of Louis Papineau, the leader 
of the malcontents in Lower Canada, and his followers. 
It was not until the later 'seventies that clerical inter- 
ference in an isolated election was seriously questioned, 



200 LORD STRATHCONA 

but in the meantime the breach was slowly widening 
between Ultramontanism, represented by clerical 
interference in the political life of the province, and 
that section of the Church which thought such an 
attitude on the part of the clergy inconsistent with 
democratic government. 

However, in spite of all the dust thrown up by 
local complications and religious difficulty, Laurier's 
supporters never wavered. The Liberal leader's atti- 
tude upon the Remedial Bill was boldly justified on 
the ground that the subject of education was entirely 
within the rights of the legislatures of the provinces. 
To admit the claim that the Federal Parliament could 
force a system upon a province in opposition to the 
expressed will of the people, was to establish a pre- 
cedent at Ottawa that might be quoted some day as 
justification for interference with the autonomy 
enjoyed by the Catholics of Quebec. There might be 
a temporary gain by the adoption of the Remedial Bill, 
but the consequences were fraught with disastrous 
possibilities in the future from even the Catholic 
point of view. Laurier's supporters in Quebec pointed 
out also, to enthusiastic gatherings, that now was a 
chance to have a French-Canadian and a Catholic 
as Prime Minister in an English-speaking and largely 
Protestant Dominion — an opportunity that might 
never occur again. This appeal to the pride of race 
proved more powerful than the terrors of excom- 
munication threatened by so many of the clergy. 

Among other questions of interest, not the least 



A DYING POLITICAL PARTY 201 

was the general opposition to the part the syndicate 
persisted in taking in the elections. While the 
individual members of the syndicate, largely repre- 
sented in the public eye by Sir Donald A. Smith and 
Lord Mount Stephen (formerly George Stephen), both 
of whom were pronounced Imperialists, the manage- 
ment of the railway was really in the hands of recently 
imported citizens of the United States, who had 
taken the short cut allowed by the Canadian laws to 
become full-fledged " British subjects." The humilia- 
tion of having erstwhile American citizens, very recent 
at that, attempting to direct the politics of the 
Dominion was rather a noxious dose even for those 
Imperialists who were not occupying the seats of the 
mighty. 

The public resentment against this open and un- 
reserved attitude on the part of the Canadian Pacific 
undoubtedly helped to throw the balance of power 
into Laurier's hands in 1896. The Tories were led 
by Sir Charles Tupper, one of the ablest statesmen 
Canada has produced. He had been kept in London 
by the jealousy of mediocrity. He was sent for when 
it would have been easier to revivify an Egyptian 
mummy of the time of Pharaoh. The Tory party was 
afflicted with dry-rot. Nevertheless, he entered the 
campaign with magnificent courage, and boundless 
resource. The corporations subsidized by the Govern- 
ment and an army of officials put up a good fight. 
Neither the Tory party nor the syndicate could 
believe other than that a miracle had happened when 



202 LORD STRATHCONA 

Laurier carried a majority in almost every province. 
The Tories and the Ultramontanes had forced the 
issue in Quebec, and they were hoist by their own 
petard. The Liberal candidates swept the province 
like an avalanche, notwithstanding the action of the 
clergy, in fact even assisted by it. During the years 
that the Liberals had been in Opposition a new 
generation had arisen in public life. Laurier was 
surrounded by a galaxy of talent such as Parliament 
had not seen for twenty-five years. The Liberal 
victory was regarded on all sides as a red-letter day 
in the history of Canada. The whole country was 
ripe for a change, and great things were expected from 
the coming administration. 



XXII 

Donald A. changing his politics again — Intriguing against Laurier's 
colleague — The power of wealth — The monetary kings win — 
Where the blow fell — Ambitions never realized — Liberals and 
the hierarchy — An appeal to Rome — Ultramontane and Orange 
— A Papal decree. 

If the syndicate had lost hy the defeat of the party 
with which they had been so intimate, the next best 
thing was to make friends with the new rulers as soon 
as possible. It did not signify, in their estimation, 
that, because they had expended enormous sums of 
money in keeping the Liberals out of power at Ottawa 
for nearly two decades, they should not make peace 
with them when they were in. They did not allow 
any false sense of modesty to stand in the way of 
approaching Wilfrid Laurier and his followers with 
the olive branch ; for had not the Liberal leaders 
threatened that as soon as they came into power they 
would issue a Royal Commission to inquire into all 
the political expenditures authorized by the syndicate 
and the Company ? It was bad enough to have their 
hopes of securing possession of the Intercolonial Rail- 
way crushed, as had certainly been done by the defeat 
of Sir Charles Tupper's Government, without having 
to face an exposure that would " stagger humanity " 

wherever responsible government was known. 

203 



204 LORD STRATHCONA 

Those who had become honoured and distinguished 
knew that such an investigation would reveal a more 
demoralizing state of affairs than the exposure of the 
former Pacific scandal, which had been so vehemently 
denounced by Donald A. Smith in 1873. They were 
prepared to stand the loss of the profits which might 
have been realized by the Intercolonial Railway project 
going through ; but none could stand the revelations 
shown up under the searchlight of a Royal Commission. 
Therefore, no time must be lost in propitiating the 
prospective First Minister. They all knew that 
Laurier's ideals of public life were too high to allow 
influences, such as they were accustomed to exercise, 
being brought into operation. However, with finan- 
ciers of that class the resources of wire-pulling are 
seldom exhausted. 

The master-minds of the intriguing combination 
were going to take no risks by placing all their eggs 
in one basket — that of the good-will which they 
hoped might be cultivated with the coming First 
Minister. Wilfrid Laurier's most prominent colleague 
was Sir Richard Cartwright, who held very pro- 
nounced views on two particular subjects — the tariff 
and the political immorality of the Canadian Pacific 
syndicate. To the latter he attributed the flood of 
corruption that had swept over Canadian politics 
since 1880. He was more insistent than any other 
prominent Liberal, since Edward Blake's retirement, 
in threatening an investigation under Royal Com- 
mission. To clip Sir Richard's wings, and perhaps 



WIRE-PULLING BY THE SYNDICATE 205 

crush his spirit, was regarded as essential. In early 
political life Cartwright had been regarded as the 
rising hope of the Tories, but he afterwards found 
himself out of sympathy with his leader. With the 
single exception of Sir Francis Hincks there has been 
no one in Canada with the peculiar aptitude for 
Government finance that Cartwright possessed. He 
had been Finance Minister in Alexander Mackenzie's 
administration from 1873 to 1878. No one else was 
thought of, during the long years between 1878 and 
1896, as head of the Treasury in a prospective Liberal 
Government. In every suggestion about the pro- 
spective personnel of the Laurier Cabinet, Sir Richard 
Cartwright's name appeared as Minister of Finance. 
It was the accepted view. 

But there were breakers ahead, undreamed of by 
the rank and file of the party. A Liberal member 
of the House of Commons and the party whip, Mr. 
James Sutherland — who was personally unfriendly to 
Cartwright, and who was known to have very intimate 
relations with the Pacific syndicate — organized a depu- 
tation of official representatives from all the Banks for 
the purpose of protesting to Wilfrid Laurier against 
the appointment of Sir Richard Cartwright as Finance 
Minister. The principal reason given was his alleged 
advocacy of a reduction in the tariff. The deputation 
claimed that Cartwright's appointment would create 
uneasiness in manufacturing and financial circles, 
as indicating drastic changes in the fiscal policy of 
the country. Laurier defended Cartwright warmly, 



206 LORD STRATHCONA 

pointing out that the Finance Minister under the 
present form of Government had no more authority 
to effect changes in the tariff than any other individual 
member of the Cabinet, and that the tariff, in what- 
ever changes might be proposed, would be the policy 
of the Government as a whole. The bankers, how- 
ever, had not come to argue, but to act. They 
finally declared that if Sir Richard was given the 
portfolio of Finance, they would immediately with- 
draw all their call loans, amounting to $125,000,000 
(^25,000,000) and thus bring on a financial crisis. 

Wilfrid Laurier did not realize his power at the 
moment, and indeed, perhaps, it was not sufficient at 
that time. In later years he would have certainly 
treated such an audacious threat with the contempt 
that it deserved. But he then yielded to the monetary 
magnates, and regretfully decided to meet their views. 
He felt he could not afford to have his Government 
face to face with a commercial crisis on the threshold 
of its existence. Another might have taken the risk. 
It is needless to discuss the reply which would be 
given to a deputation of that kind by a British states- 
man, or even the possibility of such a deputation being 
organized in Great Britain. Cartwright did not get 
the portfolio of Finance, and the ambitions and hopes 
of eighteen years were blasted. Both the Canadian 
Pacific and the manufacturers had scored in the first 
round with the victorious Liberal party. 

Wilfrid Laurier's caution at this critical period was 
prompted by no want of loyalty to a faithful colleague. 



A VICTIM OF INTRIGUE 207 

His esteem for Cartwright amounted almost to affec- 
tion. He was genuinely anxious to protect Cart- 
wright from the tide of adverse influences that were 
being so cleverly engineered. But he was strongly 
advised to surrender by two very intimate and trusted 
confidantes. They were both Scotch — one was thor- 
oughly honest in his fears and the other was not. One 
was Sir Oliver Mowat, the most timorous and con- 
scientious of statesmen, and among whose Tory and 
official social surroundings in Toronto there was no 
sympathy with Cartwright, the aristocratic Liberal. 
The other was Mr. James Sutherland, M.P., the 
organizer of the deputation, whose close intimacy with 
the syndicate was not so well known then. It was a 
different Laurier whom a party cabal met twelve 
years later, when Cartwright had almost ceased to be 
a political force. Then, when they requested the 
Prime Minister to replace him with younger blood, his 
reply was briefly : " No, Cartwright will be my colleague 
as long as he desires to remain in public life." 

Sir Oliver Mowat was in Montreal when the deputa- 
tion met Laurier, and wrote to one of his colleagues 
suggesting that the writer should see Sir Richard at 
Kingston, inform him of what was going on, and tell 
him what was likely to be Wilfrid Laurier's decision. 
Sir Richard was calmly waiting the current of events 
in his delightful home on the banks of the St. Law- 
rence, just where the waters of the Great Lakes enter 
the river. The news of the intrigue was like a bolt 
out of a clear sky. Nothing of the kind had been 



208 LORD STRATHCONA 

even dreamed of. The blow was staggering. The 
writer can never forget that sight of a strong man 
suddenly crushed. Silently we went out on the lawn 
down to the water's edge while he tried to recover 
himself. At last his spirit flamed up and asserted 
itself as he exclaimed passionately : " This is the 
syndicate. They are hiding behind the manufac- 
turers. The Banks dare not carry out their threat ! 

It is a vile plot ! Laurier cannot, cannot " he 

added brokenly. However, subsequent events proved 
the inevitable. Cartwright accepted the portfolio of 
Trade and Commerce, but he was never the Cart- 
wright of old again. For eighteen years he had spared 
neither time, energy, nor fortune in his party's interest. 
His private affairs had not received his personal atten- 
tion. His sacrifices on this point had been immense. 
He had dreamed dreams of bringing about more 
intimate political and commercial relations with the 
Mother-country ; and perhaps, also, for playing a 
leading part in negotiations for closer ties between 
Great Britain and the United States — an English- 
speaking alliance as an influence among the Great 
Powers. These were aspirations worthy of the highest 
ideals of Imperial statesmanship. But this ambition 
was shattered, and became lifeless under the new 
conditions. A great mind that had seen Imperial 
visions, narrowed into bitterness, resentment and 
jealousy. The political python which had crushed 
the aspirations of scores of prominent Liberals during 
the preceding sixteen years, whose only offence was 



CRISIS IN POLITICAL LIBERTY 209 

their love of country, had found another victim. 
But far worse was yet to follow. 

After the election, the Liberals, smarting under the 
clerical denunciations to which they had been sub- 
jected, resolved upon drastic measures to prevent 
their recurrence. Truly the Canadian Pacific Railway 
in organizing the Church campaign against Laurier 
and in fanning into flame the smouldering embers of 
religious intolerance, had built up the cause of 
Canadian political liberty better than they knew. It 
was realized on all sides that a crisis had been reached, 
between those in the Church who supported clerical 
participation in the political affairs of the country, 
and those who thought the time had come when such 
a course was inconsistent with democratic govern- 
ment ; the latter claimed to represent the vast majority 
of the Catholic electors in Laurier's native province. 
Shortly after the formation of the Laurier Govern- 
ment a meeting was called of all the Catholic repre- 
sentatives of Quebec. The influential character of 
the conference stands unquestioned — Wilfrid Laurier 
and his Catholic colleagues of the Federal Cabinet, 
Senators and Members of the House of Commons, 
Sir Louis Gouin, Premier of Quebec, and his colleagues, 
and Members of the Legislative Council and of the 
Legislative Assembly of the Province. No country 
over which the successor of the First Bishop of Rome 
exercises spiritual sway could bring together more 
devoted adherents of the Church. Among them were 
statesmen who were destined to stamp their personality 



210 LORD STRATHCONA 

upon the history of Canada to a degree far exceeding 
that of any who had gone before, and whose adminis- 
tration of the pubHc service would bring about a 
national development heretofore unparalleled in the 
life of the Dominion. It was resolved to memorialize 
the Sacred College of the Propaganda at Rome. The 
signatories were all Catholics fervently devoted to 
the interests of the Church. They represented the 
great majority of the Catholic population of the 
province. They claimed that the right to political 
liberty was not inconsistent with the spiritual life of 
the Church. They viewed with alarm the increasing 
strain that must be inevitable between the parishioners 
and the clergy by a continuation of the extraordinary 
political activity of the hierarchy so recently evident 
throughout the province, and they humbly prayed 
that the subject might receive the attention of the 
Holy See.^ 

The Ultramontane wing of the Church was up in 
arms at the unparalleled audacity of the Liberal party, 
steps being immediately taken to prevent the official 
acceptance of the memorial at Rome. And for a time 
it looked as if they might succeed. ^ But Laurier and 
his associates had taken the bit in their teeth, and 
were not going to be turned from their purpose. In 
fact they were more determined to press the matter. 
Laurier was no longer the leader of a forlorn hope in 
a Parliamentary minority. He was a Prime Minister 
of a great Colony, recently knighted at Queen Victoria's 
Diamond Jubilee, and had been the social and political 

1 Appendix, l6. ^ Appendix, 17. 



AN APPEAL TO ROME 211 

lion of the last London season. His request for a 
hearing at Rome was not as a voice crying in the 
wilderness. It was determined to reach the Great 
Head of the Church himself, Leo XHI, whom the 
world now recognizes as a great statesman and 
diplomat, with the memorial. The good offices of 
Lord Russell of Killowen and other prominent 
British Catholics were secured, and eventually His 
Holiness was made aware of the serious position of 
the Church in that part of the Catholic world where 
her supremacy had hitherto given no cause for anxiety 
to the careful watchmen on the towers of Rome. 

To the Protestant world, in which sectarian issues 
also become sometimes acute, the subsequent events 
in the province of Quebec are of more than ordinary 
interest. In the then recent elections in Canada 
the great bulk of the Catholic clergy had supported 
the Tory candidates, who in turn were political 
followers of Sir Mackenzie Bowell, the late Dominion 
Prime Minister and the acknowledged head of the 
Orange Order. Not a few had been threatened with 
excommunication from the Church as the penalty of 
voting for the Laurier candidates. Lord Londonderry, 
Sir Edward Carson, or Captain Craig never expressed 
themselves more fearful of Catholic domination or 
Rome Rule than had Sir Mackenzie Bowell in his 
1 2th of July orations. Yet Orange and Ultramontane 
had walked arm-in-arm to the polls for a quarter of a 
century. Once again they managed to find common 
ground upon which to attack Laurier. Both de- 
nounced his appeal to Rome — Orange alleging that 



212 LORD STRATHCONA 

Laurier, by the memorial of the Liberal Catholics, 
formally admitted the right of the Holy See to political 
jurisdiction in Canada ; and Ultramontane alleging 
Laurier's determination to undermine the authority 
of the Church in his native province. 

Meanw^hile events were moving at Rome, regardless 
of influences at work within and without the Sacred 
College. His Holiness appointed the present Secretary 
of State at the Vatican, Cardinal Merry Del Val, as 
Papal Legate to Canada to investigate the whole 
matter. This representative of the Church was the 
youngest priest ever sent on such an important mission. 
It may not be for a Protestant to express any opinion 
about his fitness for the post to which he was appointed ; 
but the wisdom of the selection was never questioned 
in French Canada. Of Spanish descent, educated in 
England, presenting a most charming personality, he 
mingled freely with all the different factions in Canada 
for a year. During his residence there the slightest 
hint of the trend of his thoughts never reached the 
leaders on either side. But shortly after his return to 
Rome a pronunciamento was issued by Leo XHI 
prohibiting further active participation by the clergy 
in the political affairs of the country. By this decision 
the Church gave another illustration of the reasonable- 
ness of the conclusion arrived at by Lord Macaulay 
in his review of Ranke's History of the Popes. And this 
all-important struggle for political liberty in which 
Laurier gained the hall-mark of Church authority 
upon his victory, is the most vivid illustration of the 
" biter bitten " it would be possible to find in any history. 



XXIII 

Making peace with the new ruler — The threatened Royal Com- 
mission — Laurier and Sir Donald — A seat with the Peers — Cecil 
Rhodes and Strathcona. 

Before Wilfrid Laurier realized what was taking place, 
immediately following the satisfactory returns from 
the polls, he found himself burdened with congratula- 
tory cables and telegrams from many through whose 
opposition he had suffered for eighteen years. And not 
the least important were from those connected with the 
Pacific Railway. Canadian contractors have a reputa- 
tion for changing their politics as quickly as tho. personnel 
of Governments. But members of the old syndicate 
did not wait for the change to take place. They out- 
distanced the contractors by weeks. Thus, long before 
Laurier was summoned by the Governor-General to 
form a Cabinet, leading Liberals were loaded down 
with the proffered support of erstwhile opponents. 

It became evident to the public from the beginning 
of the Liberal rigime, that the prospect of the oft- 
threatened Royal Commission of Inquiry into the 
political character of the Canadian Pacific Railway 
taking place was problematical. Wilfrid Laurier was 
taken in the flush of victory, just at the time when 

one is inclined to be at peace with the world, and 

213 



214 LORD STRATHCONA 

magnanimity is one of Laurier's strong characteristics. 
It was only necessary to offer friendship to secure 
forgiveness. He needed to be more than ordinarily 
magnanimous to have forgiven so readily, for he had 
much to forgive, and but few of his party approved 
of the course he adopted. Had he known the full 
measure of his strength, and the public conviction 
behind him which had put him in power, perhaps 
he would not have been so easily overcome. And if 
the course had been taken that the circumstances 
justified, he would have saved Canada from not a few 
pitfalls in the years to come. 

The High Commissioner in London has always 
occupied the most confidential relationship with the 
Cabinet at Ottawa. The position, hitherto, had been 
filled by a political associate of the Government of 
the day. Sir Donald A. Smith had only been in the 
office a few weeks when the Tupper Government 
which had appointed him was defeated at the polls. 
Sir Charles Tupper immediately cabled Sir Donald 
A. Smith, urging him not to tender his resignation, 
following his cable with a letter strongly suggesting 
to the High Commissioner to act on his advice. The 
reasons for this course are fairly obvious. With Sir 
Donald A. Smith's appointment as High Commissioner 
confirmed by the new Government, the threatened 
inquiry into the political relations between the 
syndicate and the Tory party might be made very 
difficult, if not impossible. The Tory leader, Sir 
Charles Tupper, knew that it was most desirable that 



HIS ABSENCE DESIRED 215 

such an inquiry should be avoided at all costs. It 
was only natural to believe that, if the head of the 
syndicate became an official of the new Government, 
there would be no inquiry. But Sir Donald A. Smith 
had a stronger sense of the proprieties of the situation 
than his political chief, Sir Charles Tupper, and he 
offered his resignation to the Government. Wilfrid 
Laurier must have known that there was no more 
dangerous political power in Canada than Sir Donald 
A. Smith. He was especially to be feared because he 
never ventured into the open. All his influence was 
exerted in the background. Perhaps Laurier thought 
that by keeping him out of Canada there might be an 
opportunity of raising the tone of Parliament, which 
was not possible with the chief member of the syndi- 
cate continually in evidence. Perhaps the new First 
Minister may have been anxious to conciliate Sir 
Donald, knowing that he had been most useful as a 
supporter of every Government which had existed in 
the Dominion since Confederation. Certainly no 
qualms of conscience that Sir Donald was not capable 
of overcoming would prevent his accepting with 
commendable grace the advent of a new political 
party at Ottawa. Laurier may have believed that the 
influence of the Canadian Pacific would never be 
turned against his party with Sir Donald as a Govern- 
ment official, and it was quite certain that the shrewd 
head of the syndicate could be depended upon to 
remember the humiliation of his removal from London 
by a substantial contribution to the Tory party funds. 



216 LORD STRATHCONA 

The Tories had convinced themselves that Laurier's 
victory was an accident that would not be repeated. 
Five years in the life of a party are but as a day, and 
they thought the elections of 1901 would remedy 
the catastrophe which had overtaken them. In the 
meantime steps were taken at Montreal to induce the 
Liberal leader to allow Sir Donald to remain in London 
as High Commissioner. He was himself anxious to 
get into the good graces of the new Cabinet, and, 
with his growing wealth and influence was becoming 
personally and officially well known in London. Upon 
these mutually satisfactory grounds Sir Donald was 
confirmed in his appointment to the public service of 
the Dominion Government. 

But the syndicate had won the trick in the new 
deal of cards. The threatened investigation became 
impossible. Had it taken place it is inconceivable 
that some action would not have been taken by 
Parliament to prevent a continuance of such influences 
being exercised. 

In the Diamond Jubilee year of Her late Majesty, 
a peerage was conferred on Sir Donald A. Smith. 
The journey had been stormy and tempestuous from 
the bleak shores of Hudson Bay in 1837 to a seat in 
the Red Chamber of the British aristocracy sixty years 
later, 1897. The British race has always recognized 
success, and, if success in life is to be measured by the 
accumulation of wealth, the subject of this honour 
was worthily recognized. Charity may cover a 
multitude of sins, but it must give first place to 



HOME-COMING TOO LATE 217 

wealth. The new peer desired to assume the title of 
Lord Glencoe. But strong protests were received 
from countrymen of his own who claimed a first 
interest in that particular title. 

At this time Lord Strathcona secured a lease of a 
small estate originally belonging to the Macdonalds 
of Glencoe, including the ancestral home. This 
property is situated on the west coast of Scotland, 
near Ballahulish. Hard by stands the memorial pillar 
that was erected by the remnant of the Macdonald 
clan, to perpetuate the memory of those who perished 
in that needless and heart-breaking massacre of the 
Macdonalds at the end of the seventeenth century. 

Their old homestead had long been in the hands 
of others. The representative of the clan had been 
absent in distant lands for many years, seeking his 
fortune with his star of hope always pointing towards 
the return to his native land. His dream by day and 
night was to rescue the home of the clan from strangers, 
and establish again, within its humble walls, the 
hospitality of his ancestors. This had been his 
inspiration as he slowly gathered sufficient money 
to realize his purpose. But he delayed his home- 
coming a few weeks too late. The option of the 
property had passed into the possession of the new 
peer, followed, shortly before the return of the head 
of the clan, by the title-deeds, much to the grief and 
disappointment of the remnant of the Macdonalds. 
He wanted to buy it from the new owner, but the 
matter had gone too far for reconsideration. Then 



218 LORD STRATHCONA 

overlooking the old homestead at the foot of the hill, 
and beneath the shadow of the famous Glencoe Pap, 
Lord Strathcona erected a magnificent country seat. 

Lord Strathcona's career is sometimes coupled with 
that master Empire Builder, Cecil Rhodes. For many 
reasons it is pardonable to say that there is little to 
compare, and much to contrast, not only in their 
early, but also in their later careers. Neither was a 
native Colonial. The one made South Africa, the 
other Canada, his adopted country. They both 
accumulated enormous fortunes in the lands of their 
adoption ; both entered public life, both had great 
private interests at stake, both had wonderful capacity 
in their respective spheres, both were the constant 
dread of their opponents, neither ever allowed an 
opponent to cross his path with impunity. 

The one, young in years, ranked as a statesman and 
a leader of men soon after he entered public life ; his 
vast wealth was accumulated beyond the influence of 
legislative enactment ; his personal interests never 
dominated a public action ; he entered the open lists 
with his personal or political opponents, with true 
British manliness ; he projected a great railway from 
the Cape to Cairo, but not with a suggestion of 
personal profit thereby. And when an untimely 
death cut short a brilliant career, he left the Parlia- 
mentary arena in South Africa, with all its associations, 
as free from stain and reproach as is the Parliament 
at Westminster. 

The other entered public life when years of dis- 



CONTRAST WITH OTHER COLONIES 219 

cretion had arrived ; he was in no sense a Parliamentary- 
leader ; his private interests became entangled from 
the beginning with the politics of the country ; 
legislation enacted by Parliament added vastly to his 
wealth and influence, and Parliamentary machinery 
was deliberately used to attain this end. His personal 
interests dominated the legislation of his country ; his 
opponents, either political or personal, or those whom 
he chose to place in that category, only knew of his 
antagonism towards them when he had secretly 
obtained their defeat or ruin. And when he withdrew 
from public life, he left a Parliamentary atmosphere 
thoroughly vitiated and corrupt, through the influences 
of a great corporation which he had brought into 
existence and of which he had been the controlling 
influence. 

In South Africa, Australia, and New Zealand, by 
the authority of Parliament, enormous expenditures 
have been incurred in the construction of railways 
that are the property of the State. There is no 
record showing that the public men of those Colonies 
participated in the profits associated with these under- 
takings. Consequently, the humiliating contrast, 
proved by the Parliamentary records, in connection 
with railway enterprises in Canada, is appalling in 
the extreme. 



XXIV 

Protecting the toilers — Opposition to rival railway lines — Knifing 
the Government policy — Standing by the combine — What 
negligence has cost Canada — Taking the farmer's life blood — 
Departmental neglect. 

The degree of gratitude that the toilers in the western 
provinces owe Lord Strathcona is not remarkable for 
its warmth. With his associates he secured the only- 
channel in the United States through which the 
products of the prairies could find an outlet for many 
years. He also obtained control of the Canadian 
charter, and secured an absolute monopoly of all the 
carrying trade, outward and inward, of the whole 
western country. By the terms of the agreement with 
the Government the syndicate was confirmed in this 
monopoly for twenty years, extensive concessions 
relieving the corporation from the payment of taxes 
and rates while it was practically allowed to charge 
the most extortionate freight rates — the last-named 
privilege being exercised to the fullest extent. Lord 
Strathcona seems not to have troubled himself with 
this aspect of the case. The management was left 
to the control of imported officials. Presumably he 
never heard about the complaints by the western 
farmers who were indeed earning their bread by the 
sweat of their brow. Perhaps it was a mistake on 

220 



PROTECTING PERSONAL INTERESTS 221 

the part of the victims of the greed of the great 
corporation that they did not interview him, as both 
the United States Hnes for many years were acting upon 
an agreed schedule of rates with the Canadian Pacific. 
Discussions took place in the Parliament of which he 
was a member, and very frequent reports of this 
agitation appeared in the Press, but possibly such 
complaints escaped his observation. 

During the years that he was High Commissioner 
questions arose of an equally serious character to the 
vast body of the toilers in Canada. The grain pro- 
ducts of the west had increased to such an extent that 
Parliament was forced to consider the construction 
of other transcontinental railways. These projects 
would open new territory, and furnish railway accom- 
modation in many necessary directions. But they also 
meant competition with his American and Canadian 
railways. To favourably consider the means of pro- 
viding relief to the overburdened worker who was 
striving against great odds to make a success of his life, 
when it meant loss, however insignificant to himself 
or his projects, was probably expecting too much from 
ordinary human nature. At any rate he had too much 
to do to give thought to those who amid the loneliness 
of those boundless prairies were seeking the hard- 
earned bread of existence. 

Sir William Mackenzie came to London year after 
year with securities that were gilt-edged, in order to 
push on the construction of the Canadian Northern 
Railway. But the financial doors were closed, when 



222 LORD STRATHCONA 

a word from the " Empire-Builder " who represented 
Canada as High Commissioner would have made all 
the difference at that time between failure and success ; 
although Sir William Mackenzie finally won in spite 
of the opposition of the High Commissioner's office. 
The securities he disposed of have long since proved 
their intrinsic value. In not an instance have the 
railway projects upon which they were issued failed 
to meet annual obligations, nor have the guarantors 
ever been called on for any part of the responsibility 
they assumed. 

And yet again. The emigration flood and the 
opening of undeveloped areas convinced the Govern- 
ment that the third transcontinental railway was re- 
quired to move the products of the west to the markets 
of the world. Parliament guaranteed the Grand 
Trunk Pacific Railway bonds, and they were offered 
in the London market. All the wealth and responsi- 
bility of the Dominion stood sponsor for the issue. 
Consols could offer no better security for investment. 
But the cold shoulder was given by the High Com- 
missioner's office, and the bonds only realized 83, 
entailing a loss of $6,000,000 (_£i, 200,000) which the 
Canadian taxpayers, by the decision of the courts, 
had to make good. 

During Lord Strathcona's occupancy of the London 
office the Canadian Pacific Railway Company estab- 
lished steamship communication between Liverpool 
and Montreal. The Company immediately entered 
into a binding agreement with the J. Pierpont Morgan, 



THE STEAMSHIP COMBINE 223 

the Hamburg-American, the North German Lloyds 
and other foreign companies to increase the passenger 
rates to North American ports, so as to exact still 
higher toll from the masses who were emigrating to 
Canada from Great Britain and the Continent. 

These increases in the emigration rates during the 
last thirteen years, Lord Strathcona all that time 
being High Commissioner, have cost the struggling 
emigrants to the Dominion over and above what was 
regarded as a fair rate in pre-combine times — 

From the Continent . . $11,500,000 £2,300,000 

From Great Britain . 32,500,000 6,500,000 

Total . $44,000,000 £8,800,000 

These figures represent only the excess above the rates 
available before the establishment of the combine. 
The total amount in excess of pre-combine rates paid 
by poor emigrants from the continent of Europe and 
Great Britain to Canada and the United States, in the 
same period, exceeds $90,000,000 (^18,000,000). 

How far this enormous sum might have assisted the 
emigrants in getting a start in a new country, or what 
suffering and hardship it might have avoided, may be 
left to the imagination. 

A steamship agreement has also gone merrily along 
whereby the freight rates on British goods to Canada 
have been increased fourfold as an " encouragement " 
of the commercial relations between the Dominion 
and the Mother-country. Certain natural products 
that find a market in this country pay a higher freight 



224 LORD STRATHCONA 

rate from Canada than the same commodities from 
United States ports. During the last two years the 
freight rates on grain and flour from Canada to Liver- 
pool have been doubled, entailing an additional cost 
for transportation annually to exporters of Canadian 
products to Great Britain of $4,750,000 (^950,000). 
This extra cost must come out of the pockets of the 
Canadian farmers. 

All these remarkable incidents have taken place 
during Lord Strathcona's tenure of office as High 
Commissioner for Canada. One looks in vain in 
departmental documents for the slightest protest by 
Lord Strathcona in the interest of the Canadian people 
against these enormous demands. The cry of the 
western farmer staggering under the load which demands 
so large a share of his corn before he can eat his bread — 
the stolid endurance of the eastern emigrant who, 
with only hope to cheer him forward, must pay so 
much of his precious savings into the Combine, before 
he can reach the Promised Land — these received no 
consideration from the " Empire-Builder." But when 
these struggling masses meet on the fertile stretches of 
Western Canada, perhaps they will find that Nature, 
at least, is more considerate, giving generously for trust 
and work and love. 



XXV 

Starting new official life — An ancestral mansion — The ghosts in 
every room — Trouble with Agents-General — Sir Claude Mac- 
donald — Official invitations — Resenting interference. 

In accepting the responsibilities of the High Com- 
missioner's office Lord Strathcona set a pace in many 
ways that other Canadians will be wise in not attempt- 
ing to follow. He was no stranger in London, having 
many personal and financial connections outside the 
Anglo-Canadian colony. As soon as he realized that 
the Intercolonial deal was off, and that the papers 
that had been prepared were useless, he adopted a 
course that was calculated to wipe out the part he 
had played in the political life of the Dominion for 
twenty-five years. He evidently proposed, by enter- 
taining on a scale hitherto beyond the means of his 
predecessors, to create an entirely new atmosphere 
around the High Commissioner's office, and, if possible, 
forget his political experiences. Official business was 
to give way entirely to the Goddess of Society, who, if 
at times fickle, can generally be propitiated with gifts. 
He looked around for a country residence, where 
during week-ends he might entertain. He finally 
decided upon leasing that magnificent Elizabethan 

mansion, Knebworth, the ancestral home of the 
p 225 



226 LORD STRATHCONA 

Lyttons. It is truly a lordly pile. The walls are 
decorated with family portraits of statesmen whose 
names stand out in bold relief in the honoured roll of 
British history. The panoply of war, ancient armour 
and weapons of defence stand in the stately hall. 
The banner that flaunted in the breeze when Earl 
Lytton held the Viceroy's Durbar at Delhi and pro- 
claimed the assumption of the title of Empress of 
India by Queen Victoria hangs from the ancient 
rafters. Within the beautiful grounds there is 
much to remind visitors of the great author of The 
Last Days of Pompeii. There are the bedrooms 
which were occupied by Hampden, Pym and Crom- 
well when they met in solemn conclave to consider 
how England could get rid of a tyrant King and a 
corrupt Parliament. The ghosts and memories of 
these noble Puritans, clamouring for a Parliament 
free from all sinister influences, and legislation only for 
the public good, was strange company for Donald A. 
Smith fresh from his Canadian experiences. Yet, 
what a coincidence ! They had made history — so had 
he. And here for ten years Lord Strathcona enter- 
tained right royally. Canadian guests rubbed shoulders 
with Royalty, Peers, and Commoners. The annual 
gathering became one of the notable events of the 
Season, and the sight of the kindly, venerable sep- 
tuagenarian and Lady Strathcona moving graciously 
among the guests will ever be a delightful memory 
to all who were favoured with invitations on these 
occasions. 



TOLERATING NO OFFICIAL RIVALS 227 

Lord Strathcona, after he had been in office two or 
three years, decided to assert his position as the only 
official representative of Canada in London. This 
attitude placed him at once in conflict with the 
Agents-General of the provinces, who up to this time 
had been also acknowledged. He intimated to them 
that they were without official standing, as their title 
was not recognized by legislative enactment ; therefore, 
in the future they must only expect to be recognized 
as ordinary persons. The late Mr. Duff-Millar, Agent- 
General for New Brunswick, said that he would not 
submit to this dictum. In view of the approaching 
Season, he ordered an Agent-General's uniform from 
a court tailor. The tailor, however, with official 
caution, telephoned to the High Commissioner's 
office for information about the bona-Jides of his 
distinguished customer, and was informed that he 
had no locus standi in official circles. Naturally the 
paint and feathers were not forthcoming at the 
appointed time, and the Agent-General had fain to 
be satisfied with his ordinary evening suit. 

These official pretensions suited Lord Strathcona 
admirably. It was the chief factor's jurisdiction over 
again. In the Canadian wilds he could not prevent 
the Indian from donning his paint and feathers, but 
he could prevent the presumptuous white man from 
doing so here. This was the first appearance of a 
peculiar trait that developed later in a more pro- 
nounced form — an intensely jealous spirit towards 
everything that might for the time being overshadow 



228 LORD STRATHCONA 

the High Commissioner's ojEBce. The appearance of 
a letter in a newspaper from a Canadian official, not 
under his jurisdiction, would immediately cause a 
scene. He made more than one trip across the 
Atlantic for no other reason than to get officials whom 
he did not like, removed. 

Like all well-appointed Government offices the 
High Commissioner's was managed upon the most 
up-to-date red-tape principles. With the appoint- 
ment of a Canadian to look after the emigration work 
of the offices, all inquirers about the Dominion were 
passed on to this official, unless it was made certain 
that they were not " common folk," in which case 
they had the doubtful honour ( ?) of an interview with 
an official of the permanent staff. Upon one occasion 
a visitor called just as a high-placed official entered 
the office. The stranger said that he wanted special 
information about Canada. Before he could say any 
more, and without turning his head to look at the 
inquirer, the official called to a messenger, " Take him 
over to the other office." He was brought to the 
writer's office with the curt introduction, " Wants 
information about Canada." The visitor, who was 
dressed in a plain tweed suit, was offered a chair. He 
handed the writer his card : " Sir Claude Macdonald, 
His Britannic Majesty's Ambassador to Japan." Sir 
Claude had just returned from that ever memorable 
heroic defence of the Embassy at Pekin on the occasion 
of the Boxer rising, and his name and fame were in 
every one's mouth. He briefly explained that he was 



CURBING SOCIAL ASPIRATIONS 229 

leaving for Tokio via Vancouver, and wanted a private 
car for the journey across Canada ; that he had been to 
Cooks', and to the Canadian Pacific Railway, but could 
get no satisfaction. " From the High Commissioner's 
office," he laughingly added, " I have been referred 
to you." The mistake of the official in refusing an 
interview to " the farmer-like looking chap," as he 
afterwards humbly explained to Lord Strathcona, 
was only on a line with the usual procedure of the 
office. The following day the writer was able to 
show Sir Claude a cablegram from Sir Wilfrid Laurier 
conveying the assurance that a Government private 
car would be at his disposal on his arrival in Canada. 
When all the arrangements were completed I showed 
the cablegrams to Lord Strathcona, only to hear his 
severe comment : " You had no right to do this. Sir 
Claude Macdonald should have come to me. Cour- 
tesies of this kind belong to my office." 

The experience that Lord Strathcona gained on 
the occasion of the coronation of King Edward proved 
more than useful when King George's turn came. All 
applications to the Lord Chamberlain for invitations 
to various functions were transmitted to the official 
representing the country or colony with which the 
applicant was connected. Therefore, any visitor 
from Canada had to run the gauntlet of revision by 
the High Commissioner. The disappointments were 
many. Those in favour had the inside track. Among 
those to whom Lord Strathcona had taken a strange 
dislike was the manager of the Bank of Montreal, 



230 LORD STRATHCONA 

Threadneedle Street, now Sir Frederick Williams- 
Taylor, general manager at Montreal. Sir Frederick's 
name was most persistently struck out of every list 
for invitations to coronation functions by Lord 
Strathcona. Inquiries only elicted the reply : " The 
Lord Chamberlain says that his list is complete." 
" Commands " were out for a Garden Party at 
Windsor Castle. Sir Frederick waited impatiently 
for his. All his aristocratic neighbours were invited. 
He endeavoured to inquire the reason for the delay 
from the official secretary of the High Commis- 
sioner's office, telling the attendant at the 'phone 
his name and the reason why he wanted to speak to 
the official. He heard a voice, which he recognized, 
say : " Tell him I am engaged with Lord Strathcona 
just now." When the Bank of Montreal finally got 
into connection there was some plain talk. The result 
was, however, in Lord Strathcona's opinion, that the 
office had been " insulted," and Sir Frederick had no 
longer a chance of any invitation to coronation func- 
tions through the office of the High Commissioner 
for Canada. But Sir Frederick had very influential 
connections outside. His name was placed on another 
list for everything that was going, Windsor Castle, 
and, later on, his knighthood. But for having 
succeeded in getting behind the ordinary official 
channels he was never forgiven by the London 
representative of the Canadian Government. 

Any interference with matters that Lord Strathcona 
regarded as pertaining to his official preserve was most 



RESENTING INTERFERENCE 231 

hotly resented. And any effort to get the ear of the 
Ottawa Government, except through his office, brought 
down the most disastrous consequences on the innocent 
offender. The numerous proposals for the erection 
of an official building in London, unless first submitted 
to him, were condemned unhesitatingly in official 
letters. An enthusiastic advocate of one of these 
Canadian building projects presented an admirable 
proposal to the Ministers at Ottawa. He was advised 
to return to London immediately, and explain it to 
Lord Strathcona before allowing anything to appear 
in the Press. But in an evil moment he took an 
Ottawa reporter into his confidence, the news was 
cabled to London, and when the promoter interviewed 
Lord Strathcona he was politely informed that as he 
had gone to Ottawa without consulting the High 
Commissioner's office, he (Lord Strathcona) could 
not now entertain it. 

Lord Grey made arrangements with the London 
County Council for the famous island site on Kings- 
way without first consulting Lord Strathcona. The 
usual result followed. To smooth the way for the 
acceptance of one of these proposals for a Canadian 
building on a site that the Government was considering, 
a member of Sir Wilfrid Laurier's Cabinet suggested 
to the High Commissioner that, if it was a good move 
on the part of the bank with which he was connected 
to erect commodious offices in Threadneedle Street, 
why should not Canada do likewise ? Lord Strathcona 
replied that the experience of the bank furnished the 



232 LORD STRATHCONA 

strongest possible argument for not following that 
example : " because," he added, " since we moved 
into that building the officials have lost their heads. 
The7 are looking for nothing but social distinction and 
titles, and are neglecting their duties." 

It is no longer a secret that " the important official 
communication " that Lord Strathcona insisted in 
writing, about which inspired paragraphs appeared in 
the Press a day or two before he passed awsij, was a 
long letter to Ottawa denouncing in somewhat uncom- 
promising terms all the proposals that had been sent 
to Ottawa from time to time through unofficial 
channels about a Canadian building in London, and 
strongly advocating the adoption of the recom- 
mendation that he had submitted, which was that 
the site of the Westminster Hospital should be pur- 
chased by the Dominion Government, and that it 
was the only suitable place for the proposed Canadian 
building. 



XXVI 

Personal characteristics — Never lacking in courage — Reputations 
destroyed — Development of Canada — Solving the emigration 
problem — Strathcona threatened with arrest in Germany — Lord 
Salisbury's warning — Posing as the successful emigration worker 
— Hon. Clifford Sifton's work — Assistance of British Journalism 
— The Coronation Arch — Further Imperial honours. 

Amid the most gloomy and discouraging periods in 
the history of the Pacific Railway, Lord Strathcona 
never doubted but that a brighter dawn would 
eventually appear. When all the other members of 
the syndicate were growing prematurely old under the 
severe strain of hope and fear, his courage never 
faltered. Had there been less of that course which 
can only be condemned, and more of that which 
was commendable in the internal management, there 
would have been less occasion for the temporary 
trouble that overtook the Company. 

The enormous sums that were expended in corrupt- 
ing the body politic did not by any means represent 
the actual cost of that policy. Those moneys only 
represented the direct cost. The indirect expense 
to the Company and syndicate was much larger. 
It was not that they had to meet certain conditions 
in the pohtical life of the country, but they deliberately 

made the conditions themselves. They had gone into 

233 



234 LORD STRATHCONA 

the whole business with their eyes wide open. Once 
having entered on a course which cannot be condemned 
too strongly, the whole management of their business 
became as questionable as the recent condemnation 
of the management of the great insurance companies 
in the United States. It was the knowledge of the 
corrupt phases of the operations of the Company, in 
the great financial centres of the world, that caused 
doubt about the reliability of their securities. The 
financiers of the world had a clearer estimate of what 
was going on than the Canadian public. 

The Canadian Pacific syndicate followed exactly 
the same course at Ottawa that Huntingdon and 
Ames did with the Southern Pacific Railway in the 
western States and at Washington. Great concessions 
of land and money subsidies were secured, and repre- 
sentatives in Congress became the recipients of railway 
favours. The day of reckoning arrived in the great 
republic when an indignant people became roused, 
and the long-delayed inquiry was instituted. As a 
result of the investigations, reputations of men high 
in public estimation tumbled like houses of cards. But 
not before a state of affairs was revealed that was 
looked upon as impossible even in the United States. 
Nothing but the large magnanimity of those whom 
patriotism and self-protection forced to be the op- 
ponents of the Canadian syndicate, has prevented the 
fate that overcame prominent statesmen in the United 
States, as well as De Lesseps in France, from engulfing 
a similar class which dominated the politics of the 



A GREAT CORPORATION 235 

Dominion for so many years. And the unreserved 
magnanimity that was shown to them has been taken 
as evidence of cowardice. 

Lord Strathcona lived to see the enterprise which 
owes its charter to his poHtical foresight increase 
beyond his most sanguine anticipations. The Com- 
pany now owns sixteen thousand miles of railway in 
active operation ; two great steamship lines traversing 
the Atlantic and Pacific Oceans ; to say nothing about 
cable and telegraphic properties. The annual revenue 
of the Company exceeds $150,000,000 (^30,000,000), 
and upon the stock and bonds of the Company satis- 
factory dividends are promptly and regularly paid. 
The capital of the Company is announced as being 
$485,000,000 (j^97,ooo,ooo). The records of the 
decade between 1897 and 1907 will be remembered 
as the great turning-point in the history of Canada. 
The imports and exports more than doubled — the 
public revenue almost trebled — the manufacturing 
industries expanded enormously — notwithstanding a 
largely increased expenditure surpluses aggregating 
$200,000,000 (^^40,000,000) accumulated, and portions 
of the national debt falHng due were paid out of the 
revenue. No country in modern times has had such 
a record of permanent development and prosperity. 

Nothing but these extraordinary conditions enabled 
Canada to withstand the severe strain which was 
placed upon its financial life by the methods adopted 
by the Pacific Railway syndicate. The Dominion 
certainly could not stand further experience of this 



236 LORD STRATHCONA 

character. The danger still exists that others may 
look towards the Dominion as the field for another 
attempt to emulate the actions of the Pacific Railway. 
Such a course could not but bring disaster in its train. 

It is a singular fact that the permanent advance in 
the fortunes of the Pacific Railway became particularly 
evident shortly after the Liberal party assumed power 
at Ottawa, though to keep this party out of office 
hundreds of thousands of pounds were spent in cor- 
rupting the electorate by the syndicate. The 
enormous increase in the receipts of the Company is 
due entirely to the great wave of prosperity that has 
been sweeping over Canada for the last fifteen years. 
This was brought about by the tide of emigration 
from all parts of the world being successfully directed 
to the Dominion as the result of the policy instituted 
by Hon. Clifford Sifton, to whom must ever be given 
the honour for this significant turning-point in 
Canadian history. 

Mr. Clifford Sifton was the representative of the 
great west in the Laurier Cabinet. He was Attorney- 
General in the Manitoba Government when Wilfrid 
Laurier offered him charge of the Department of the 
Interior. He came from the prairie provinces full 
of enthusiasm about the possibilities of that vast area 
between Winnipeg and the Rocky Mountains. For 
thirty years successive Ministers had endeavoured to 
solve the immigration problem at Ottawa, each one 
apparently leaving the question in worse shape than 
his predecessor. The High Commissioner's office had 



CANADA EXPECTING MUCH 237 

been placed in charge of the emigration propaganda 
in Great Britain and Europe. The results to the 
Dominion were nil. 

Canadians congratulated themselves when Sir Donald 
A. Smith became High Commissioner. It was thought 
that something would be done of a practical character 
in regard to emigration, but he too settled down to 
the ordinary official status quo. As the result of 
correspondence with Sir Donald Smith, Mr. Sifton 
proposed that a Canadian official should be sent to 
London to take charge of emigration work. Sir 
Donald in reply thought that a minor clerk at a small 
salary would answer the requirements. But the 
Minister decided that a much more responsible official 
was necessary. Before this could be accomplished, 
however, Sir Donald had been High Commissioner for 
more than two years. 

In the meantime Sir Donald decided to do some- 
thing. He was impressed with the idea that he 
should visit the Continent and see what could be done 
to assist emigration. At Hamburg he issued letters 
of invitation to fifty or sixty attaches of booking agents, 
stating that " Lord Strathcona, High Commissioner 
for Canada " would like to confer with them at his 
hotel on the question of emigration to Canada. An 
invitation from an English lord brought a fairly large 
attendance of a certain class. The High Commissioner 
addressed them, pointing out the advantages offered 
to emigrants by Canada, impressed on them the fact 
that a bonus was paid upon each emigrant to the 



238 LORD STRATHCONA 

Dominion, and asked their cordial co-operation in 
this work. Fortunately Lord Strathcona did not 
prolong his stay in Germany beyond that day. 

On his return to London he immediately wrote an 
extended report about his trip to the Continent in 
the interest of emigration, addressing a copy to the 
Prime Minister and also one officially to the Department 
of the Interior, giving a summary of his address " to 
a crowded meeting of booking agents." He proposed 
to show the Ottawa Government that, with such 
activity on his part, the occasion for sending over a 
responsible official to take charge of emigration was 
altogether unnecessary. 

But, alas for this incursion into unfamiliar fields ! 
Scarcely had this long report of the Hamburg meeting 
reached the mail-box, than Lord Strathcona received an 
urgent message from the Right Hon. Joseph Chamber- 
lain, Secretary of State for the Colonies, saying that he 
wanted to see him at the earliest possible moment on 
a matter of grave importance in the Foreign Minister's 
Department. The Colonial Secretary informed Lord 
Strathcona that the Prime Minister, Lord Salisbury, 
had received an official visit from Count Hatzfeldt, 
the German Ambassador, who stated that the High 
Commissioner for Canada had, contrary to the German 
law, and also in violation of the police regulations of 
Prussia, addressed a meeting of booking agents in 
Hamburg, inciting them to emigration work. The 
Ambassador desired Lord Salisbury to advise Lord 
Strathcona that, under no circumstances whatever. 



THREATENED WITH ARREST 239 

would it be advisable for him to visit any part of 
Germany, because the police at the frontier had 
instructions to arrest him without ceremony for his 
flagrant violation of the law. Lord Salisbury also 
advised Mr. Chamberlain that it would be well if 
Lord Strathcona could submit a statement proving 
that the German authorities were under a misconcep- 
tion as to the facts of the case. 

The German authorities were quite astray in one 
particular. The " booking agents " of Hamburg had 
not responded to the invitation to confer with the 
English lord. If Lord Strathcona wanted to see them 
on business, they had decided that he might better 
call at their business offices. The distinguished 
company who favoured the Canadian High Commis- 
sioner with their presence were the street-runners 
or " tooters " connected with the competitive steam- 
ship companies. They had rushed to the Hamburger 
Hof merely to see a real live English lord. 

The High Commissioner returned to his office after 
his interview with Mr. Joseph Chamberlain deeply 
crestfallen. For diplomatic reasons, and in order to 
preserve his standing with the Prime Minister and 
the Colonial Secretary, he desired to explain away the 
incident. But there were those letters on the way to 
Ottawa ! Lord Strathcona, however, took the plunge 
by cabling to Ottawa an urgent request to regard 
his correspondence on his continental tour as " con- 
fidential." He then addressed an official letter to 
Lord Ampthill, who at that time was private secretary 



240 LORD STRATHCONA 

to the Colonial Secretary, giving a markedly different 
account of his incidental meeting with the booking 
agents at Hamburg than that which he had sent to 
Ottawa a few days previously. He also expressed the 
hope that his denial of the charges sent to Berlin by 
the Hamburg police, that he had incited an emigra- 
tion propaganda on the occasion of his recent visit to 
the Continent, would be accepted by the German 
authorities. 

To all appearance official records of Lord Strath- 
cona's connection with the matter at issue were out 
of the way. But punctilious officialism, even in 
Canada, dearly loves a report, more especially one 
signed by a lord. To allow such a communication 
to be anywhere else than on the principal files of the 
Department would be an unheard-of breach of 
etiquette. So the report about the visit to Germany 
on emigration duly reached the correspondence clerks. 

Some years later the correspondence was produced to 
a Committee of the House of Commons, and the official 
inconsistencies between the report to Ottawa and the 
letter to Lord Ampthill became public property. 

This visit to the Continent, carried out with a 
flourish of trumpets, and which had such humiliating 
consequences, was Lord Strathcona's first and last 
personal effort to direct an emigration movement to 
the Dominion of Canada. He had no more to do 
with the magnificent work that was done to rouse an 
interest throughout the emigrating world to the 
advantages offered by Canada than had the men who 



SOLVING THE EMIGRATION PROBLEM 241 

aimlessly haunt the Embankment, parks, or squares 
of London. The official eulogies of Lord Strathcona 
published on this phase of his official work have not 
the slightest foundation in fact. 

The great tide of emigration which has turned 
towards Canada during the last fourteen years is the 
direct result of the policy instituted by Hon. Clifford 
Sifton. He entered the Cabinet determined that the 
failures of thirty years should be overcome. He 
believed that the genius of Canadian statesmanship 
could find a solution for the problem, and to it he gave 
his undivided attention. He appointed Hon. James A. 
Smart Deputy-Minister, Mr. Frank Pedley Super- 
intendent of Immigration, Mr. W. J. White Com- 
missioner to the United States, and a Commissioner 
of Emigration to Great Britain and Europe. These 
officials were assured of the confidence of the Minister, 
were told that their recommendations would be 
accepted, and that all the money needed to insure 
success would be forthcoming. The officials in London 
connected with the emigration work were removed 
from the control of the High Commissioner's office, 
so as to allow the fullest freedom of action. In the 
work in this country the value of the assistance that 
was given, without an exception, by the British Press 
can never be over-estimated. Without this hearty and 
gratuitous co-operation on the part of British journal- 
ism no such magnificent results could ever have been 
obtained. For the first time in the history of Great 
Britain, under this propaganda, the number of 



242 LORD STRATHCONA 

British emigrants to Canada far exceeded those going 
to the United States. To apportion any part of the 
credit of this marvellous work to Lord Strathcona is 
to delve into an atmosphere of fiction. In point of 
fact the success of Mr. Sifton's propaganda by officials 
outside the control of his office was a subject of con- 
stant jealousy to Lord Strathcona. He regarded their 
success as a reflection upon the High Commissioner's 
office, and he only became reconciled to the situation 
when Hon. Clifford Sifton had withdrawn from the 
Government and the successful officials had been 
removed to other fields of government work. 

The impression must not be created that Lord 
Strathcona was uninterested in emigration work. 
On the contrary he was interested for the most 
obvious reasons ; although when the writer discussed 
the matter with him for the first time in 1898, he was 
exceedingly dubious about the possibility of any 
great movement from this country being directed to 
Canada, instancing the comparative failure of the 
emigration work that had been carried on in Great 
Britain and the Continent under the supervision of 
his own office, and also by that of the Canadian Pacific 
Railway. These unsuccessful efforts, he feared, did 
not give a basis for much hope in the future, more 
especially as he was assured that every possible plan 
had been tried by the High Commissioner's office 
to awaken an interest in Canada on this side of the 
Atlantic. This, in fact, was the generally accepted 
view everywhere. The late Mr. Moberly Bell, of 



THE CORONATION ARCH 243 

The Times, told the writer that he feared it was 
impossible to induce the British emigrant to go to 
Canada, or to interest the general public in the 
Dominion. But at the same time Mr. Bell freely 
offered the columns of The Times in any manner 
desired to assist in the official propaganda. 

An unexpected opportunity was afforded Lord 
Strathcona in the summer of 1902 to be of signal 
service. Arrangements were then being made to 
decorate London on the occasion of His late Majesty's 
coronation. The writer, after consulting the High 
Commissioner, and with the consent of the Depart- 
ment at Ottawa, requested permission from the West- 
minster Council to erect a Canadian Arch in Whitehall. 
The assurance was given that it would be done on a 
scale suitable to the occasion, and on the recommen- 
dation of the Earl of Onslow, who was Chairman of 
the Council, the permission was granted. The an- 
nouncement in the Press that Canada intended taking 
this step caused a sensation. Instructions, however, 
came by cable from Ottawa that only j^6oo would be 
authorized by the Department for this purpose. In 
reply to pressing cables, the Departm^ent finally con- 
sented to an expenditure not exceeding £1200. 

At this point it may be mentioned that Lord 
Strathcona, while de facto an official of the Dominion 
Government and occupying a position to which 
there was a large salary attached, had persistently 
declined to accept any salary. This undoubtedly 
allowed him liberty of action that could not be taken 



244 LORD STRATHCONA 

with impunity by ordinary officials. On learning of the 
latest instructions from Ottawa about the proposed 
arch he inquired what the expenditure was likely to 
be. When told that it would probably reach £6000, 
if the plans then being considered were adopted, he 
said : " Go on with the work, I will see you through, 
if the Government raises any objection. We cannot 
afford to stop now." However, when the Minister 
learned about the instructions that had been cabled 
by the Department, he unhesitatingly assumed all 
responsibility for the expenditure. From the begin- 
ning to the end Lord Strathcona took an intense interest 
in the progress of the work, and was quite pleased with 
having decided to over-ride departmental instructions 
for the time. The cost, as might be expected, ex- 
ceeded the original estimates. Parliament not only 
cordially approved of the expenditure, but the Oppo- 
sition, with unprecedented magnanimity, complimented 
the London management of the Emigration Depart- 
ment for taking advantage of the opportunity to 
make the resources of Canada known throughout the 
world. 

It is probably not generally known that, except for the 
first day or two, none but foreigners were engaged in 
the construction and maintenance. English labourers 
refused to work either on Saturday afternoons or after 
regular hours, although offered double rates of wages 
for overtime. Consequently there was a hurried visit 
to the foreign settlements in the East End, and Belgians 
and French were given the profitable employment. 



A NEW PACE IN DECORATIONS 245 

Several of the discharged British labourers came to 
the scene of activity and threatened to set fire to the 
structure. This alarmed the authorities to such an 
extent that special fire and police protection was 
considered necessary. 

As the massive pile of timbers rose, Whitehall became 
a centre of attraction. Street decorations upon such 
a scale are unknown in this country, although they are 
not uncommon in Canada. When the late King visited 
the Dominion in i860 he saw them in every place. 
London for the most part confines its extravagance 
in street decorations to the same old Venetian masts, 
enthusiastically trotting them out upon every con- 
ceivable occasion. The extravagance of Canada there- 
fore created a record. The crimson roses alone that 
were purchased in Paris and Hamburg to decorate 
the lower part of the structure, and which only 
arrived rich in fragrance the night before the corona- 
tion, cost more than all the other public decorations 
on Whitehall. In point of publicity Canada received 
ample return for the expenditure. The arch was the 
great feature of the coronation decorations. Pictures 
appeared in tens of thousands of publications through- 
out the world. Hour after hour as many as one hun- 
dred and fifty at the same time pointed their kodaks 
at the structure. The issue of picture postal cards 
ran into tens of millions. Scores of excursions were 
run from all parts of England to London with the 
special attraction of seeing the Canadian Arch. Canada 
had reason to be satisfied. 



246 LORD STRATHCONA 

But it came very near to being the occasion of a 
shocking accident. During the march down Whitehall 
on Dominion Day of the Canadian contingent that 
Sir Henry Pellatt brought to London, while Sir 
Wilfrid and Lady Laurier with a number of friends 
had taken places on the main balcony of the arch, 
two or three gentlemen in the lower part of the 
structure were suddenly attracted by a faint cracking 
of timber ; and looking up saw with horror that the 
upper floor was giving way. They quickly rushed 
with spare timbers that fortunately were near, to 
support the slowly-sinking platform. The crowd was 
removed from above, having but a faint knowledge of 
the serious accident that had been so narrowly averted. 

Upon the recommendation of the Governor-General, 
acting for the Prime Minister, Donald A. Smith was 
knighted in 1896. In the distribution of honours on 
the occasion of the Diamond Jubilee his name was 
submitted by Sir Wilfrid Laurier for a barony. This, 
however, was only a life peerage. In 1909 Sir John 
McNeil informed the writer that Lord Strathcona had 
been to see him several times in order to get his 
assistance in having his title arranged so that the re- 
version would pass to Hon. Mrs. Howard and her heirs. 
Sir John had mentioned the matter to the Queen, 
the Prime Minister and the Colonial Secretary, but 
it was clear that official regulations made it very 
difficult, if not impossible, to do anything without 
the concurrence of the authorities in Canada. I had 
several interviews with Sir John, and finally decided 



HOW A TITLE BECAME HEREDITARY 247 

to go to Ottawa, where I found the impression with 
the Government that Lord Strathcona wished the 
title to become extinct at his death. However, 
fortunately, I had Sir John's letters on the subject, 
and they left no room for doubt. The day following 
my discussion with Sir Richard Cartwright, he told 
me that the Premier had seen Lord Minto, the 
Governor-General, who had immediately communi- 
cated with the Colonial Office. Sir Richard was 
anxious that I should tell Lord Strathcona on my 
return to London what he, Sir Richard, had done. 
This I fully intended doing, but prefaced my inten- 
tions with congratulations on the change in the 
character of his title, full particulars of which had 
already been published. He replied, before I could 
say any more : " I do not know how these things are 
done. The Queen has been pressing this upon me 
for some time, but I did not feel justified in accepting 
until now." I was silenced, but enjoyed a good laugh 
with Sir John McNeil over it later. Shortly after- 
wards the announcement was made in the Press that 
Lord Strathcona had purchased an island on the 
west coast of Scotland from Sir John for ^30,000. 



XXVII 

Election journey to Canada — Keeping the C. P. R. quiet — Still afraid 
of investigation — The standard of British politics — Danger to 
the State. 

The failure to investigate the well-known Pacific Rail- 
way methods in Canada emboldened that great cor- 
poration to continue its peculiar practices on more 
than one occasion. Four general elections have taken 
place since Sir Wilfrid Laurier's assumption of office — 
1900, 1904, 1908 and 191 1. In connection with the 
first an unexpected development occurred. There 
was a house party at Glencoe, the writer being among 
the guests. The campaign in Canada was then in full 
swing. It was immediately after breakfast that morn- 
ing telegrams were handed in. Lord Strathcona had 
the usual number. Calling me into the library he 
told me that he had to leave for Canada the following 
day, but he wanted the guests to continue their visit 
as if nothing had happened. He said that his presence 
in Canada was imperative, handing me a cable that had 
just been received. The information, which was not, 
however, from the Government, was that the Canadian 
Pacific officials in Montreal were preparing to oppose 
the Government with their old-time vigour. To 
prevent this he hurried off to Canada, taking up his 

248 



KNIFING CANADIAN PROJECTS 249 

quarters in Montreal, where he stood guard over the 
officials of the Company until all fear of the threatened 
participation had passed. The course that he had 
been willing the original syndicate should take, he 
was averse in his later years to leave as a legacy to the 
great corporation that he had founded, or as a justifi- 
cation for continuing to interfere with the politics of 
the Dominion. Nevertheless, in 1904, the influence of 
the company was let loose against the Liberal Govern- 
ment, the principal reason given for this action being 
that Laurier favoured the construction of the Grand 
Trunk Pacific Railway. The annoyance of the Com- 
pany at being unable to prevent a charter being 
granted to the Grand Trunk for a line to the Pacific 
coast, was made the occasion of a declaration by a 
very prominent Canadian Pacific official that he 
would prevent the Grand Trunk from getting money 
in London to build the road. Previous to this the 
Canadian Pacific influences had endeavoured to pre- 
vent the Mackenzie and Mann lines from finding money 
to carry on their railway construction. The Company 
which has grown out of the original syndicate has 
since acted as if it owns the country. Its schemes 
have been successful in Parliament for so many years 
that such a conclusion seems natural. 

In the elections of 191 1 all reserve was thrown to 
the winds, and the full army of 75,000 employees was 
marshalled against the Government. Such conduct 
on the part of any corporation in Germany, Austria 
or France, would result in the officials finding them- 



250 LORD STRATHCONA 

selves in prison with little loss of time. It could not 
take place in Great Britain, nor could any candidate 
be found, even with a certainty of election, willing 
to accept support of that character. Yet the people 
of Canada pride themselves upon the idea that their 
Legislature is built on the model of the Mother of 
Parliaments ! 

The revelation at a recent session of the British 
House of Commons, that the directors of the London 
and North-western Railway had subscribed ;^200 to 
an election fund, was sufficiently startling to both 
sides of the House to cause the immediate stoppage of 
legislation then being enacted in the interest of the 
company, until an apology could be offered, and 
evidence adduced that the money had been returned 
to the company by the directors. There is no need 
to inquire as to what action the British Parliament 
would take, if evidence was available that a railway 
corporation had expended half a million pounds 
sterling, and turned the whole machinery of its 
organization into corrupting the political life of the 
country. It may be interesting to ask what kind of an 
uproar would there be in British politics if, in seeking 
an extension of the powers of the Chartered Company 
of South Africa from the British Parliament, Sir 
Leander Starr Jameson, the President of the Company, 
should present the wife of the Prime Minister with a 
necklace of jewels costing ^40,000, loan the Chancellor 
^10,000 to ^20,000, deposit to the credit of another 
Member of the Cabinet from ^50,000 to ^100,000 



BALLOT-BOX MUST BE FREE 251 

for his personal use, contribute ^100,000 to the 
Liberal Whip for party purposes, and scatter the 
Chartered Company's shares among members on both 
sides of the House ! And yet this is exactly what was 
done in the Dominion Parliament to advance the 
interests of the Canadian Pacific Railway. In regard 
to the participants, the receivers are " Honourable 
Gentlemen," and the contributors are " Empire- 
Builders." There is a healthier element now on both 
sides of the House, sick and tired of this sinister domi- 
nation of the public life of the country. The little 
leaven will yet " leaven the whole lump." And, when 
that time comes, reputations, both of the living and 
the dead, will suffer. 

No country can afford to have its public interests 
overshadowed by the active influence of a great 
corporation. This is particularly objectionable if 
such a corporation has developed under bounty drawn 
from the public exchequer. Corporations have a 
proper position in every country, but their place, as 
corporate bodies, is not at the ballot-box. The ballot 
is a personal possession, not corporate or collective in 
its character. It is the nation's " pearl of great 
price." The rich and poor must stand upon a perfect 
equality with the ballot and at the ballot-box. There 
is no liberty of action when a powerful corporation, 
either secretly or openly, attempts to dominate 
elections. Such corporate monstrosities must be 
throttled. 

If the genius of statesmanship has not discovered a 



252 LORD STRATHCONA 

way to enact legislation, punishing with the utmost 
severity all possible attempts to interfere with the 
liberty of the subject, the sooner it is done the better. 
If it is not done now, if will be done later, and then 
" vested interests " will suffer. The Dominion Legis- 
lature is a Parliament, possessing full Parliamentary 
powers. And with public opinion behind it, there is 
no influence to stand in its way. The solution of this 
problem has long since been settled in British politics, 
but it has yet to be solved in the most important 
colony of the Empire. 

The Canadian people, calmly pursuing their peace- 
ful avocations, were new to the conditions introduced 
into Dominion politics in the interest of the syndicate. 
Officials were imported from the United States, with 
an intimate knowledge of the methods employed in 
manipulating public men in railway interests in the 
west, and were placed in charge of the Canadian Pacific. 
Under their instructions, the most improved tactics 
were brought into play to complete the demoralization 
of Canadian public life, and at the same time to secure 
the control of the Parliamentary institutions of the 
country. 

The general public had not time or opportunity, 
amid the struggles for home and family, to watch too 
closely the actions of those who so loudly claimed to 
be patriotic. Canadians as a class are actuated by 
high principles. This heritage has fallen to them 
from the noble bands of English, Scotch, Irish and 
French who emigrated to Canada in its earlier years, 



CANADIAN PEOPLE ARE HONEST 253 

and whose self-sacrificing toil laid the foundation of 
an honest race. The people had every reason to be- 
lieve that the standards of honour and honesty that 
prevailed in the ordinary walks of life were finding 
expression in the administration of government. 
That the Parliament of the Dominion of Canada should 
be the medium of creating private wealth is as 
repugnant to them as it is to the electors of Great 
Britain. They believed that the British ideal existed 
in their own manner and form of government. No 
other conception of public life prevails in the minds 
of the masses of the Canadian people. The lives of 
Brown, Mackenzie, Holton and Dorion more properly 
represent the characteristics of this people than the 
record of those, living or dead, who have caused other 
considerations to prevail in high places. 



XXVIII 

Distribution of wealth — The Strathcona Horse — Consternation at a 
banquet — Visits from the troopers' famiHes — A share in the good 
times — Subscription to British political funds — The All-Red 
Route — The ruling passion — Fear of possible successor — Sir 
Frederick Borden and Sir Gilbert Parker — A pathetic scene — 
Conclusion there is no hurry to resign — Lady Strathcona. 

The romance of Lord Strathcona's life between the 
western prairies and the House of Lords would be 
incomplete without a reference to gifts that will 
cause his name to be remembered. The Queen 
Victoria Jubilee Hospital at Montreal, in co-operation 
with another Pacific syndicate magnate, Lord Mount 
Stephen, was erected at an enormous cost, and in its 
appointments is one of the best institutions on the 
continent of America. The King's Hospital Fund, 
London, in which he was also joined by the nobleman 
referred to, established a record in subscriptions of 
that character ; McGill University, Montreal, in the 
equipment of which Lord Strathcona and Sir William 
Macdonald expended several millions ; the Strath- 
cona Horse, a contribution to the Empire during the 
South African War, has no precedent in the history of 
any country. 

A propos of the Strathcona Horse, it will be re- 
membered that on the return of the force from South 
Africa, the ofhcers and men were much feted in 

London. The amusements provided for the non- 
254 



TOO MANY COMPLIMENTS 255 

commissioned officers and men were on a most 
extensive scale. The officers enjoyed receptions 
and banquets galore. So many compliments were 
dinned into their ears by the beauty and fashion of 
the day that it is not surprising, if, during the late 
hours at well-laid-out banquets where everything of 
a gastronomic character that the heart could desire 
was generously provided, the compliments assumed en- 
larged proportions, and a faint idea took possession of 
some of the officers' minds that the Strathcona Horse 
had really turned the tide of victory in South Africa. 
As a final farewell to the gallant Canadian force. Lord 
Strathcona gave a banquet to the officers at the Hotel 
Cecil. The guests were among the most notable in 
the Empire. Heads of the Army and Navy, Field- 
Marshals and Admirals, Foreign and Colonial officials, 
in a goodly company, gathered round the festive 
board. If anything had been left unsaid about the 
wonderful fighting character of the force, it was 
amply compensated for on this occasion. There was 
no longer any doubt about the marvellous achievements 
of the Strathcona House. Queen Mary would never 
have lost Calais, Bonaparte might have won Waterloo, 
and Napoleon would have saved his Empire at Sedan, 
if the Strathcona Horse had been with the defeated of 
those days. Lord Strathcona proposed the " Health 
of the officers of the Strathcona Horse," the title of 
which he said the guests knew he was not responsible 
for. He expressed his personal appreciation of their 
bravery, and of their anxiety to help the Empire in the 
hour of trouble. After the toast had been properly 



256 LORD STRATHCONA 

honoured, one of the officers rose to reply. With 
flashing eyes and in a voice indicating intense earnest- 
ness, he assured the gathering that he was not a pubhc 
speaker, but he was a fighter. (Loud applause.) 
Raising his glass " To the Strathcona Horse," he said : 
" We are the Boys " (loud applause). " We can lick 
anything in sight " (applause and laughter). " One 
of us is worth any five Frenchmen " (consternation), 
" and we can lick h — out of the Germans." A look 
of horror appeared on every face. Privy Councillors 
half rose from their seats. Two prominent guests 
immediately endeavoured to get the enthusiastic 
fighter to resume his. But his appetite had been 
sharpened for the blood of a foreigner. With great 
difficulty, and amid a rattle of dishes to drown any 
further references of a similar character, the brave 
soldier was pushed towards the exit, repeating over 
and over again, " We can lick," etc., etc. The repre- 
sentatives of diplomacy were horrified. A feast which 
promised so much that was pleasant had suddenly 
turned to ashes. Word was passed down the table that 
the incident must be regarded as never having taken 
place. But the ghost of international complications 
haunted the banqueting-hall for the rest of the evening. 
As the company dispersed a very prominent diplomat 

was heard to say : " D the Strathcona Horse ! " 

There was another phase of the Strathcona Horse 
that gave Lord Strathcona not a little anxiety, and 
which, of course, could not have been foreseen. In 
anticipation of the return of their husbands, the 
wives of three or four of the troopers, young and 



UNEXPECTED DEVELOPMENTS 257 

bonny, came to London to meet the idols of the nation. 
The Canadian Press had enlarged on the gratitude of 
the Empire to the force, and outlined a programme 
that was being prepared for the troopers on their return 
from the scene of active operations. Why should not 
the wives have a share of the good things that were 
going ? Had they not suffered also ? Some of these 
anxious spouses anticipated their lords' return by 
many months. They could not do less than visit the 
office of the great man whose liberality had provided 
the means for their husbands to seek glory in South 
Africa, and it was from him, also, that they were likely 
to get the most reliable information about the return 
of the troops. The officials at the High Commis- 
sioner's office were unusually courteous and atten- 
tive, and they were also very solicitous that the ladies 
should not interview Lord Strathcona. But they 
succeeded in passing the official barriers and intro- 
duced themselves. The natural inquiries as to how 
they were getting on without their husbands opened 
the floodgates, and more information was forthcoming 
than was wanted. The bread-winners were away 
fighting to save the Empire. They were having a 
hard time in looking after themselves. The appeal 
was irresistible — proper provision was immediately 
made on a most liberal scale. One or two of these 
anxious wives learned that their benefactor kept late 
office hours, and they found fewer officials obstructing 
their entrance than during the day. So they chose 
the evenings for their visits to Victoria Street. Visits 
of that kind were capable of serious misapprehension, 



258 LORD STRATHCONA 

unjust misconstruction from every possible stand- 
point, but that possibility never occurred to the sturdy 
Canadian matrons. One evening when Lady Strath- 
cona had come down from Grosvenor Square with the 
object of taking Lord Strathcona home at a more 
reasonable hour than he was accustomed to leave his 
office, one of these evening visitors entered. She 
informed the official in the outer office that she must 
see Lord Strathcona. The official explained that Lady 
Strathcona was with him, and, also, he was very busy. 
But if Lady Strathcona was there it was all the greater 
incentive, as she was very anxious to meet Lady 
Strathcona as well. The official, however, was obdurate. 
The best he could do was to take her card into his 
Lordship. The visitor's card was therefore laid on 
Lord Strathcona's desk. After a moment's hesitation 
Lord Strathcona said : " Tell him that I cannot 
possibly see him to-night. Come to-morrow morn- 
ing." But it was no use. The official returned with 
the message, " He says he really must see your Lord- 
ship, and he will wait in the library at your con- 
venience." Evening visitors, after this experience, 
were barred for a long time at 17 Victoria Street, but 
Lord Strathcona gave instructions that there must be 
no difficulties raised by the officials to prevent these 
people from seeing him during the daytime. 

Lord Strathcona experienced not a little uneasiness 
at the persistent efforts of several members of the 
British House of Commons in a certain direction, 
during the early session of Sir Henry Campbell-Banner- 
man's administration, to trace a persistent rumour to 



LIBERAL POLITICAL SUBSCRIPTION 259 

the effect that the High Commissioner for Canada had 
contributed ^150,000 to the funds of a pohtical 
organization that was then carrying on a very costly 
and extensive propaganda throughout Great Britain. 
For three or four weeks repeated notices of inquiry to 
the Government were given to the officials of the 
House on the subject, but these never appeared on the 
official records. All kinds of objections were raised by 
those charged with responsibility about the form and 
procedure in such cases. Although it was evident to 
the inquirers who wanted to make the matter public 
that their intentions were going to be blocked, they 
led the officers of the House a lively dance, by the 
various forms in which the subject was presented from 
time to time. It was believed by those high in 
authority that it was not in the public interest that 
Lord Strathcona's practical sympathy with this 
question, in view of his official position, should be 
generally known. The fear of having his association 
with a political policy that was opposed by the Govern- 
ment to which he was accredited announced to the 
public, to say nothing about his oft-repeated assurance 
to friends that he took no interest in British party 
politics, disturbed Lord Strathcona's equanimity sadly. 
It was obviously a case where it was advisable that the 
right hand should not know what the left was doing. 
One other incident of a public character in con- 
nection with Lord Strathcona's later life stands out 
as worthy of note. During the session of the Colonial 
Conference in 1907 there was much unofficial talk 
about a line of steamships connecting direct with 



260 LORD STRATHCONA 

railways through British possessions to the Antipodes, 
famiharly known as the All-Red Route. The idea 
had taken a good hold of the public mind, regardless 
of the vast steamship interests plying between Australia 
and Europe. 

At any rate Sir Wilfrid Laurier introduced a 
resolution to the Colonial Conference recommending 
that imperial and colonial assistance be given to such 
a project. He announced during the course of his 
speech that he had discussed the question with Lord 
Strathcona, who was willing, on the terms proposed, 
to throw the influence of his great wealth into the 
scale and make the All-Red Route a success. The 
minimum terms suggested were on the basis of a 
subsidy from the governments of Great Britain, 
Canada, New Zealand and Australia of $5,000,000 
(^1,000,000) annually, for twenty years, totalling 
$100,000,000 (^20,000,000), with which to start. 
With Lord Strathcona's experience of issuing railway 
bonds to the public, and paid-up ordinary stock to 
himself, the only cost being the printing account, this 
proposal certainly opened up magnificent possibilities. 
Others did not see them at the moment, but he took 
in the situation at a glance. The project was hanging 
fire, the early imperialistic enthusiasm having sub- 
sided about the time that a great newspaper amal- 
gamation or shuffle was on the cards in London. 
Money was wanted to carry the rearrangement of the 
newspaper ownership through. Lord Strathcona was 
consulted, and he offered to subscribe from ^150,000 
to j^300,ooo, provided the newspapers concerned in 



RUMOURS OF RESIGNATION 261 

the deal should take special interest in advocating the 
All-Red Route. However, the idea of the so-called 
Imperial Route, and the amalgamation of the news- 
paper interests in question died a natural death. 

In connection with the oft-repeated rumours of 
Lord Strathcona's intended resignation, which never 
had any foundation, he was particularly disturbed at 
the suggested appointment of Sir Frederick Borden, 
or Sir Gilbert Parker, as his successor. He would 
have left nothing undone to prevent either of these 
notable gentlemen from being High Commissioner. 
The truth is that he had no intention of resigning, but 
the name of a probable successor seemed to indicate 
that his resignation was desirable. In regard to Sir 
Frederick, information was given by an official in the 
High Commissioner's office which formed the foun- 
dation of an article in a leading periodical in London, 
which, if based on fact, would have rendered the 
appointment impossible. Sir Frederick promptly in- 
stituted proceedings for libel against the writer and 
the publishers. A full and unqualified apology was 
given to Sir Frederick, and the charges were acknow- 
ledged to be without foundation, and a substantial 
sum was paid into court in mitigation of damages. 
Respecting Sir Gilbert Parker, Lord Strathcona asked 
me if I had heard about Sir Gilbert's alleged aspirations 
to be High Commissioner. As I was well aware of 
the conversations that had taken place at Ottawa, I 
ventured the remark that I thought Sir Gilbert 
Parker could do Canada great service in many ways 
as High Commissioner, if he (Lord Strathcona) was 



262 LORD STRATHCONA 

determined to resign. " Utterly useless, utterly use- 
less ! He would only use the office to get into the 
House of Lords. That is all he wants it for," was 
his reply. It was evident that the hour had not 
then come for his withdrawal. Leading politicians 
on both sides of the House would gladly have heard 
of his resignation any time within the last six or 
seven years of his life. In fact it was confidently 
looked for. Both sides knew that any suggestion 
from one would mean an open purse for election 
purposes at the disposal of the other. Neither party 
wanted him in Canada, each being fearful of his 
possible support of the other. 

Finally, in the early months of 191 1, he announced 
that the Dominion Day dinner would be the last 
occasion at which he would appear in public as High 
Commissioner for Canada. He requested Sir Wilfrid 
Laurier to make the official announcement, on the 
evening of the gathering, that he desired to be relieved 
from the cares of office. The occasion when Lord 
Strathcona rose to address the company was exceed- 
ingly pathetic. The frail figure with snow-white 
hair, the shoulders drooping with the burden of years 
far beyond the allotted span, the voice faint and 
trembling, uttering farewell, sent a thrill of over- 
powering emotion through the room. It was the 
passing away of a great character. If wealth, honours 
and success meant everything, he had nothing left to 
desire. But he had already grown tired. As the crowd 
withdrew from the banqueting-hall there was a subdued 



PROMISED RESIGNATION WITHHELD 263 

feeling of sympathy and regret. For the moment one 
wished that history could be rewritten, or blotted out ! 

The resignation was to be delivered to Sir Wilfrid 
at an early date. The Canadian Prime Minister 
offered the post to Sir Frederick Borden, one of his 
most faithful, as well as capable colleagues, who had 
been Minister of Militia for many years. At Euston 
Station, on the morning of Sir Wilfrid's departure 
for Canada, he said to Lord Strathcona in his usual 
urbane manner : " Allow me to introduce your 
successor, Lord Strathcona," pointing to Sir Frederick. 
" I hope you will enjoy life in London, Sir Frederick ; 
it is a pleasant place to live in," replied the High 
Commissioner. Farewell courtesies were exchanged 
and the train was off. 

Lord Strathcona returned to his office. A chance 
visitor found him in a deep study. He said that he 
had just been formally introduced to his successor by 
Sir Wilfrid, and it seemed like breaking all associations 
with the atmosphere in which he had lived for forty 
years. Three or four weeks afterwards a cable de- 
spatch appeared from Ottawa in the London Press 
that Sir Frederick had not yet been appointed High 
Commissioner because Lord Strathcona's official 
resignation had not been received by the Premier. 
This was shown the same day to Lord Strathcona. 
His reply was : " There is no hurry, there is no hurry^ 
is there ? " The resignation was never sent. The 
same day that the news was confirmed that Sir Wilfrid's 
Government was going out, he took passage to Ottawa, 



264 LORD STRATHCONA 

and on arrival naturally paid his respects to the 
incoming Premier. 

Few men had more personal charm than Lord 
Strathcona. In his relations with the public and as a 
host nothing could exceed his grace and courtesy. He 
might have belonged to the ancient regime. The 
official position of his later years threw him into 
association with lifelong opponents, but to the most 
extreme of these he never lacked politeness and friend- 
liness. Whatever his feelings might be, and he was 
only human, his mastery over himself was complete. 
This was a strong characteristic. Nothing could dis- 
turb his equanimity. Many who affect this manner 
of life succumb to nervous exhaustion by suppression 
of the natural emotions. Lord Strathcona's lengthened 
years proves his heritage. No one will say that he 
carried his heart on his sleeve — few men do. Almost 
everyone has some secret that the world has no right 
to know. His fine natural manner gave all the im- 
pression that he was as free and open as the sun. 

" ' Let us be open as the day,' 

Quoth he who doth the deeper hidcc" 

Certainly there was great natural kindness in his 
character, — his splendid gifts to universities and 
hospitals prove this. No one could so support insti- 
tutions for the intellectual and physical betterment 
of his fellow-men without deep human sympathies. 
For friends, too, he would do anything, and strangers 
in need rarely appealed to him in vain. He gave not 
grudgingly, but bestowed generously. With oppo- 



HE MIGHT HAVE BEEN 265 

nents, or those who crossed his will, his method was 
to try first to win them over without any of the 
appearance of the mailed fist. Courtesy and gold were 
pressed into service to make rough places smooth and 
overcome opposition. But if the subjects of his 
consideration remained obdurate, then he crushed 
without delay, taking pains, however, that Strathcona's 
hand was never seen in the matter. There were always 
others willing to accept the responsibility. He de- 
veloped his power in this direction into a science. 
He never allowed himself to show resentment. So 
far as possible he avoided arousing thoughts of reprisals 
in the hearts of his opponents. However the end 
might justify the means, the reason for the means 
was not in evidence — his hand was never visible. In 
fact, he more often than not tempered the wind to the 
shorn lamb, with an appearance of personal sympathy. 
Lord Strathcona had great qualities — his foresight 
and his perseverance amounted to genius. He could 
have succeeded in any walk of life. He had some 
bent towards religion, and if circumstances had led 
him in that direction, in the opinion of the writer, 
he might have been a great power, leaving a name 
not less venerated than Wesley or Booth. He might, 
too, have been a great statesman, history giving him 
a place with Clive and Rhodes. The opportunity 
was there for one who had the diviner dreams and 
larger loves of the altruist for his country. He had 
the foresight and the splendid daring of genius. But 
he chose personal power and wealth for Donald A. 
Smith. That opportunity, also, was there in a large 



266 LORD STRATHCONA 

degree only possible in the western United States 
and Canada forty years ago. He took the chance 
Fortune offered him, played for enormous stakes with 
the weapons that the circumstances of the time 
permitted him to forge. And he won. He deserved 
to win. He gained enormous fortune, immense 
power, high honours for himself — exceeding in all 
these particulars any romantic dreams that he might 
have indulged in. But just in the degree that Lord 
Strathcona succeeded for himself, it is a question for 
history to finally decide, whether he did not fail in 
the larger test — that of true and noble patriotism. 

The story of his life is written upon the public 
records of the country, so that he who runs may read. 

Those who were favoured with Lady Strathcona's 
friendship and confidence came to know a candid and 
kindly nature. Her perfect frankness was her charm. 
In the old days in Labrador, when the Indians would 
gather at the post apparently determined to make a 
quasi permanent stay, diplomatic suggestions from 
the head of the house that it was time to go had no 
effect whatever. She, however, took a hand in the 
dismissal, treating them like the children of Nature 
that they were, and, as the writer heard her tell the 
story of her experiences in this particular, she said : 
" They moved quickly for me, when they would not 
budge for Donald A." 

In London Lady Strathcona was so overshadowed 
by the official and personal prominence of her husband, 
that many who only casually knew her as the social 
head of the Canadian circle failed to appreciate her 



A CHARMING PERSONALITY 267 

diffident and unassuming womanliness. Honesty and 
candour were ever present in her intercourse with 
people, but never unkindness. Entering, as Lady 
Strathcona did, the highest social circles of the Empire 
when the shadows of life had long lengthened, she 
never lost herself — there always remained a sweet 
personality. Those who were admitted to that inti- 
macy will always have the pleasantest recollections of 
her charm, her gentle kindness, and her sympathy. 

If sometimes she wished for more of the quietness 
of family life, and less incessant social demands — the 
part of life in which Lord Strathcona revelled, it is 
not a matter of surprise. 

During Lord Strathcona's lease of Knebworth, 
nothing gave him greater pleasure than to invite friends 
there for the week-end. Upon one occasion he left 
word at Grosvenor Square, when he was leaving for 
the day, that he had invited Sir Charles and Lady 
Tupper to go to Knebworth with them, and that 
Sir Charles was to send a message whether he could 
go or not. Just at the moment that the telephone 
rang Lady Strathcona happened to be in the hall. 
The butler, receiving a message, turned to Lady 
Strathcona, saying, " It is Sir Charles Tupper, your 
Ladyship. He says that he and Lady Tupper will be 
glad to go to Knebworth this afternoon." " Oh, bother 
the Tuppers," said Lady Strathcona, " I don't want 
them at Knebworth this week." The butler, knowing 
Lord Strathcona's wishes, did just what any well- 
trained butler would have done under the circum- 
stances and replied to Sir Charles with studied 



268 LORD STRATHCONA 

decorum, " Lady Strathcona is delighted to hear you 
are going, and will meet you at King's Cross Station 
at three o'clock." The last shot from Lady Strathcona 
before the 'phone was hung up was, " You have no 
right to say that." 

However Sir Charles and Lady Tupper were at the 
station in time to meet the other guests and take the 
train for Knebworth. Sir Charles was very quiet. 
He was far from forgetting what he had heard at the 
other end of the 'phone, and wondered how he could 
even up with the little woman with the candid tongue. 

During dinner Sir Charles turned the conversation 
to the general convenience of the modern telephone. 
He was sitting a little distance from Lady Strathcona. 
Suddenly addressing her he said, " But you know, 
Lady Strathcona, telephones are very dangerous things 
to have around sometimes." " Are they indeed, Sir 
Charles ? Do tell me how, because I am very near ours 
quite often." The company was all attention as Sir 
Charles leaned over, and with a kindly smile said, 
" Yes, very dangerous. Lady Strathcona, because I 
heard every word you said to-day when I 'phoned to 
Grosvenor Square." Quick as a flash the reply came, 
" Well, Sir Charles, I meant every word of it." Of 
course the company insisted upon hearing the story, 
which was told by Lady Strathcona amid roars of 
laughter, in which Sir Charles joined most heartily. 
In conversation after the ladies had retired from the 
dining-room, Sir Charles said good-humouredly, 
" Lady Strathcona is too sharp for me, but I do enjoy 
her candour." 



XXIX 

Lord Strathcona's Will — Cancellation |of Canadian loans — Securing 
friends in high places — Sir George E. Foster — Sir Richard 
Cartwright ruined by rival company — The great Samson shorn 
of his strength — Bleeding the Canadian public — Comparison 
with British procedure — Winnipeg — An unforgiven offence — 
The unaccepted atonement. 

Under Lord Strathcona's Will, which was probated 
in New York, he left his Scottish estates and half a 
million of money to the heirs succeeding to the title. 
Subject to a number of legacies, Lord Strathcona 
bequeathed the residue of his estate to his daughter, 
now Lady Strathcona. Among the legacies are the 
following : — 

St. John's College, Cambridge (in addition to £ 

^10,000 given during his lifetime) . . 10,000 
Royal Victoria College, Montreal (under 
deduction of any payments made during 
his lifetime, and in addition to the 
College buildings and site provided by 
him at a cost of about £80,000) . . . 200,000 
Royal Victoria Hospital, Montreal . . . 100,000 
Yale University, Connecticut, U.S.A. . . 100,000 
University of Aberdeen for Chair of Agri- 
culture 5,000 

Leanchoil Cottage Hospital, Forres . . . 10,000 

269 



270 LORD STRATHCONA 

Queen Alexandra Extension Home and Hos- 
pital for Incurables, Streatham . . . ^^2,000 
National Hospital for Paralysed and Epi- 
leptics 2,000 

London University College Hospital . . 2,000 

Middlesex Hospital 2,000 

Church of Scotland, Aged and Infirm 

Ministers' Fund 10,000 

Queen's University, Kingston, Canada, 

Extension Fund 20,000 

Principal, Church of Canada Presbyterian 

College, Montreal 12,000 

" ^1,000 to my godson, son of Mrs. Arthur Jameson, 
of Dorcourt, Red Hill. 

" j^i,ooo to my godson, Baden- Powell. 
" ^1,000 to Rupert Anson, son of Lord Lichfield. 
" ^1,000 to Neil McGrigor, younger son of Sir James 
D. McGrigor, baronet. 

"^1,000 to my god-daughter, the daughter of Sir 
Peter Stewart Bam. 

"^1,000 to my trusted friend, William Garson, 
Writer to the Signet, Edinburgh. 

" j^i,ooo to^. G. Colmer, who has given me valuable 
assistance for many years. 

" ^1,000 to James Garson, Writer to the Signet, 
Edinburgh. 

"^1,000 to JV. L. Grijith, at present secretary to 
the High Commissioner for Canada. 

"j/^i,ooo to Principal Adam Smith, of Aberdeen 
University, personally. 



REMEMBERING FRIENDS 271 

" 1,000 guineas to Sir Thomas Barlozv, in addition 
to the legacy of a similar amount left to him in my 
Will. 

" 500 guineas to Dr. Pasteur, in addition to the 
legacy of similar amount left to him in my Will. 

" An annuity of £100 during her lifetime to Miss 
Sydney Stuart. 

" An annuity of ^^120 jointly during their lives and 
to the survivor to the two daughters of son of my Uncle, 
Patrick Stuart, at one time Town Major of Belfast. 

"An annuity of ^150 to Margaret McLennan, for 
many years my late wife's maid and personal help, 
also a useful attendant of myself. 

" A legacy of ^1,000 to Principal William Peterson, 
of McGill College, personally. 

" A legacy of ^£300 to Robert Garson, to assist him 
to complete his studies. 

" A legacy of ;£25o to Christy E. Mackay, Montreal. 

" A legacy of ^250 to Rosa Pitts, at one time trained 
nurse to my late wife. 

" I specially request my daughter and other trustees 
to contribute generally as they know I would do for 
the benefit of all personal servants, including Abraham 
May, my assistant secretary, and all others who may 
be in my service at my death, according to length and 
value of their services. 

" Retired Chief Factor, Roderick MacFarlane, and 
other retired factors of the Hudson's Bay Company 
who are now receiving a reduced allowance, each 
during his lifetime, but in different proportions one 



272 LORD STRATHCONA 

from the other, to be given out of my estate not 
exceeding one-half of what each ^ets from the Company, 
the allowance in each case ceasing on the death of the 
individual and the highest proportion allowed to any- 
one individual not to exceed ^50 annually. 

LEGACY AND ESTATE TO HIS STEPSON 

"In trust for James Hardisty Smith, named in my 
Will, and his children, a sum of _£5,ooo, in addition to 
the sum of ^^25,000, mentioned in the fifth article of 
my Will, and subject to the same conditions in all 
respects." 

BEQUEST TO NIECES 

The trustees are directed to invest ^20,000 and 
pay the income thereof to " my niece, Margaret M. 
Smith, of Stuart Lodge, Polworth Terrace, Edinburgh, 
daughter of my late brother, John Stuart Smith, M.D.," 
and upon her death to her issue, " whom failing, to 
her sister Mrs. Eliz.a Jane Grant, of Thornhill, Forres, 
widow of the late Robert D. Grant, whom failing, to 
the children of the said Eliza Jane Grant, and the 
issue of any children who may have predeceased, such 
taking their parents' share, and the said legacy shall 
vest when the same becomes payable." 

Also ^20,000 to be invested for the said Eliza Jane 
Grant, and upon her death to her issue. 

REMISSION OF DEBTS 

" I remit and cancel the debts owing to me by (i) 
the estate of the late Right Hon. Richard Cartzvright, 
(2) the estate of the late Lieut.-Colonel William White, 



AN ENORMOUS FORTUNE 273 

one time Deputy Postmaster-General of Canada, (3) 
the Hon. George E. Foster. 

TO MR. BURNS FOR THE LEPERS 

" Further, I give and bequeath to the Right Hon. 
John Burns the sum of ^5,000 for the purpose of a 
home and maintenance for a number of some fifty 
lepers in the United Kingdom, but none of this sum 
to be expended on or for other lepers who may come 
into the United Kingdom. 

TO LADY STRATHCONA AND HER CHILDREN 

" I direct my trustees to pay, convey and transfer 
to Margaret Charlotte Howard, in the event of her 
surviving me, the whole residue of my means and 
estate, heritable and movable, real and personal, 
wherever situated, and in the event of the said Margaret 
Charlotte Howard predeceasing me, I direct my 
trustees to hold the said residue until the youngest of 
her children, who shall survive me, attain the age of 
twenty-one." 

Lord Strathcona's Will was also rendered for probate 
at Somerset House, May 26th, 1914. The value of 
personal estate in the United Kingdom, ^^418,500; 
personal estate abroad, ^4,232,000 ; total value of 
personal estate, ^4,651,000. The estate duty payable 
was ^837,000. 

The principal property consisted of : Great Northern 
Railway in the United States, $6,606,000 ; Northern 
Pacific Railway of the United States, $3,380,000 ; 



274 LORD STRATHCONA 

Canadian Pacific Railway, $4,112,000; Bank of Mon- 
treal, $645,000 ; Laurentine Company of Quebec, 
$466,000 ; Dominion Steel Corporation, $400,000 ; 
Hudson's Bay Company, ^248,000 ; Anglo-Persian 
Company, ^56,000 ; Barmg Brothers, ^^44,000. 

The statement was made in the House of Commons 
that Lord Strathcona held ^^i, 000,000 Ordinary Stock 
in the Anglo-Persian Oil Company.^ It was well known 
that he held various other stocks of considerable value 
in numerous companies. As no record of them appears 
in the probate statement, colour is lent to the rumour 
that was going the rounds a few years ago, that a large 
part of his estate had been distributed long before his 
death, when his wealth was placed at a much higher 
figure than his actual possessions at the time of his death. 

A clause in Lord Strathcona's Will that aroused 
mingled feeling of surprise and dismay in Canada was 
the public cancellation of alleged indebtedness to him 
by the late Sir Richard Cartwright and Sir George 
Foster, formerly Ministers of Finance in Liberal and 
Tory Governments. The latter is now Minister of Trade 
and Commerce, as the former was in the recent 
Government. Sir George Foster represents Canada 
on the Imperial Trade Commission. Why the public 
should have been taken into confidence in these 
transactions in this manner, when there were others 
of a similar character, must ever remain a mystery. 
There were certainly no public reasons why these 
statesmen should receive exceptional treatment in this 

1 Appendix, 13. 



UNLOOKED-FOR PUBLICITY 275 

respect at his hands. The clause in the Will was 
evidently inserted after the death of Sir Richard. 

Sir George Foster, like many Colonials has had a 
varied career. He owes his prominence in public life 
less to personal popularity than to natural ability. 
Next to Sir Charles Tupper he stood head and shoulders 
over all the others of his party as a fine public speaker : 
impressive, brilliant, incisive and extraordinarily critical 
of political opponents. Formerly Professor of Litera- 
ture in a New Brunswick college, he soon learned that 
a man hath no honour in his own country. He went 
west to Ontario where a Prohibition campaign was in 
full swing, being received as the guest of the President 
of the Temperance League, Mr. D. B. Chisholm, a 
prominent Liberal and wealthy citizen of Hamilton. 
His host gladly engaged him as a speaker at $io {£2) 
per meeting. He soon estabHshed a reputation for 
platform oratory, with the result that he successively 
entered the political field in his native province as an 
independent temperance candidate for the House of 
Commons in 1882. 

Sir John Macdonald, always on the look-out for 
new talent, in 1885 offered Mr. Foster a seat in the 
Cabinet, promoting him in 1888 to the responsible 
position of Finance Minister. He held this office 
during the successive changes in the Cabinet under 
Sir John Abbott, Sir John Thompson, and Sir Macken- 
zie Bowell. In the session of 1896 he joined the cabal 
within the Cabinet against the Premier. He was one 
of the six Ministers who tendered their resignations. 



276 LORD STRATHCONA 

and sat on the cross benches of the House of Commons 
for several weeks, during which time Government 
business came to a standstill. 

He was deeply indebted to the First Minister, Sir 
Mackenzie Bowell, as the latter had used his kind 
offices with Lady Aberdeen in a matter of deep personal 
concern to Sir George Foster, but gratitude and 
loyalty were never Sir George's strong points. The 
determination to deprive Sir Mackenzie of the leader- 
ship of the party on the occasion of the resignation 
of half his Cabinet, is strong evidence of the decadence 
of the party at that particular period. And the 
bitterness that existed between the factions may be 
better understood from the statement, that when the 
returns were published in the evening of the general 
election of 1896, announcing the defeat of the 
Government of which Sir George Foster was a 
member, the Bowell family joined in the public 
jubilation of the Liberals. 

Sir George Foster came to London to take part in 
the Tariff Reform propaganda in 1904, with a chance 
of permanently remaining in England. Although on 
the question of Protection he has probably no equal 
on the platform, his presentation of the case did not 
meet with general favour. The Tariff Reform Com- 
mittee vainly offered London newspapers sixpence 
per line to print a resume of his speeches. The 
whirligig of time brought its revenge, however, in 
191 2, on his return to London as a member of 
Sir R. L. Borden's Cabinet, when he became the 



THE INCONVENIENCE OF POVERTY 277 

honoured guest of the Constitutional Club, and had 
his every utterance chronicled with great eclat. Sir 
George Foster's financial position was not flourishing 
during the long period when his party was out of 
office. It is unfortunate that the personal rancour 
introduced into Canadian politics in the last thirty 
years has often followed faithful public services into 
private life, and not infrequently crippled individual 
earning-capacity. Poverty is no crime, but extremely 
inconvenient ; then wealth in the hands of other 
parties may be a cause of offence. It is as hard to 
kick against wealth as it was for Saul to kick against 
the pricks. Borrowing money from Lord Strathcona 
was, perhaps, natural enough. Lord Strathcona could 
afford it, and was willing to lend. If the debt had not 
been cancelled in the Will, a discriminating public need 
not have been called upon to take an interest in the 
matter. 

It is a strange coincidence in regard to these trans- 
actions that Sir Richard Cartwright and Sir George 
Foster were both ex-Finance Ministers, and during 
the years they were in opposition, that particular 
portfolio should have been ear-marked for them 
both, against the time when fortune should favour 
their respective parties. The intrigue to keep Cart- 
wright out of office was because it was feared his 
official policy would be on a line with his public declara- 
tions. But there was no wire-pulling necessary to 
prevent Foster being Finance Minister when Sir R. L. 
Borden formed his Government. It had recently 



278 LORD STRATHCONA 

been proved before a Royal Commission that Sir 
George Foster had negotiated for a secret commission 
to himself, while manager of the Union Trust Com- 
pany, in a large financial deal. The editor of the 
Toronto Globe repeated the charge in a very offensive 
manner, and Sir George Foster entered an action for 
libel, but lost the case. Sir George's excessive humilia- 
tion was all that his most bitter opponents could desire. 
But he received many expressions of sympathy from 
prominent Liberals, as no public man worthy of the 
name could rejoice in any stigma being attached to 
one who had been prominently in the service of the 
country. Foster's mistake, which may well be called 
merely an error of judgment, cost him the portfolio 
of Finance. Important financial negotiations were 
pending, and therefore, another was elected for the 
post who was sans peur et sans reproche. 

The other beneficiary under the Will was Sir Richard 
Cartwright, once the bulwark of the Liberal party, 
respected by friend and foe for his dauntless courage 
and unflinching integrity. From none had come 
more impassioned denunciations of those in public 
life who accepted favours from, or placed themselves 
under the influence of, the Pacific Railway magnates. 
For many years he was most bitterly hated by the 
Tory party. He was blamed for the strong language 
that he used against the evils of the time. His 
justification was his desire to protect public interests. 
In his fighting years he was the leader of the Radical 
and anti-syndicate Liberals. All young Liberalism 



EVER WATCHING FOR PREY 279 

had been brought up at the feet of this Gamaliel. 
Because it would probably ruin Cartwright's holdings 
in another company, Tory Members were canvassed 
to vote for certain legislation incorporating a sub- 
sidiary company in the interest of the syndicate. 
Dating from the formation of that company Sir 
Richard was crippled financially. Opportunities had 
not been wanting in his public life to secure wealth, 
but he was unimpeachable. 

Shortly after the formation of the Laurier Govern- 
ment in 1896, to the surprise of his friends, Cartwright 
became very sympathetic to the Pacific Railway 
demands. Lord Strathcona was well aware of Cart- 
wright's financial difficulties, and he had transferred to 
him a large number of shares, representing a consider- 
able sum of money, in a company that Cartwright 
was slightly interested in. The correspondence gives 
evidence of Strathcona having heard Cartwright say 
in the presence of friends, that he wished he had a 
larger holding in a certain company. When Strath- 
cona returned to London he sent these shares to 
Cartwright, telling him at the same time that he 
could pay for them at his convenience. This was 
apparently done without any prearrangement. It 
was, therefore, a strictly confidential transaction, as 
was also Mr. Foster's, and probably for that reason 
all the more objectionable from a public standpoint. 
Money as a direct bribe could not have bought either 
Sir Richard Cartwright or Mr. Foster. But Sir 
Richard's necessity was Lord Strathcona's opportunity. 



280 LORD STRATHCONA 

No one could have a stronger sense of gratitude 
than a high-souled man like Cartwright. This fine 
phase of his character now proved his weakness. In 
Strathcona's hands he became as clay to the potter. 
From this time he was dominated by the man who 
had come to his rescue in the hour of his need. The 
Will revealed in this unmistakable manner how deeply 
the canker had eaten into the body politic, when even 
the great Samson of Canadian Liberalism was shorn 
of his power. 

The Department of Trade and Commerce is specially 
responsible for the Government policy respecting 
steamship services. The Canadian Pacific has enor- 
mous dealings with this branch of the public service. 
There is no denying the fact that since these loans 
were made the annual subsidy to the syndicate Pacific 
Ocean service has been largely increased ; the Atlantic 
service has been treated with even greater generosity ; 
regulations have brought into force that the preferen- 
tial tariff of thirty-three per cent, upon British goods 
shall only be allowed on steamships sailing direct to 
Canadian ports ; and Atlantic mails, unless specially 
endorsed, are sent by Canadian steamship lines. The 
value of these concessions to the Canadian Pacific 
Railway is simply enormous. 

How completely Lord Strathcona dominated the 
department as soon as he had Sir Richard Cartwright 
under compliment, was further illustrated in another 
phase of departmental policy. In 1904 Sir Richard 
gave the writer instructions to arrange for commodious 



HOW DEPARTMENTS WERE CONTROLLED 281 

offices in London for his department, with a view to 
encouraging British trade on much the same lines as 
Chfford Sifton was doing with emigration. It was 
intended to appoint an official who would not be 
connected with the office of the High Commissioner ; 
but Lord Strathcona cabled his objections to a policy 
whereby any official of that department should be free 
from responsibility to his office. Negotiations for 
offices were held up. Sir Richard tried to overcome 
Strathcona's objections. But arguing with one to 
whom you are indebted is like getting annoyed with 
a telephone — utterly useless. Cartwright reluctantly 
abandoned the project, and told the writer after- 
wards that he did not carry out his intentions because 
of Lord Strathcona's opposition. The influences at 
work to so effectively change departmental policy 
were inexplicable then, inasmuch as Sir Richard 
seldom turned back once having set his hand to the 
plough. Now the reasons are only too self-evident. 
Through the medium of this Will Lord Strathcona's 
dead hand has been stretched out to deface the memory 
of one upon whose shield there had been no stain. 

The full extent of Lord Strathcona's influence with 
the Department of Trade and Commerce will never 
be known, but it was vastly more serious than in the 
matter already referred to. No steps whatever were 
taken by him to protect the Canadian public against 
the enormous increase in the freight and emigrant 
rates of the heavily subsidized Atlantic services con- 
trolled by the Canadian Pacific syndicate. The 



282 LORD STRATHCONA 

co-operation of these companies renders the North 
Atlantic Combine effective, and the direct cost of 
the Combine to Canada is enormous. The recent 
doubhng of the freight rates on grain and flour alone 
takes millions of dollars annually out of the pockets of 
the hard-working agricultural masses of the Dominion, 
before these products can reach the British market. 

The debts that were owing to Lord Strathcona by- 
responsible Ministers of the Crown in the Dominion, 
which he so calmly provided should be publicly 
announced in his Will, present a most extraordinarily 
interesting situation. The sordid significance of the 
matter, though, is painful. Students of British 
Parliamentary institutions may well be astounded at 
these revelations. Comparison in the administration 
of public affairs between the Colonies and the Mother- 
country are sometimes made. In the " possessions 
beyond the seas " there should be as high a conception 
of the proprieties of political life as at Westminster. 
In South Africa and the Antipodes it is so. The 
situation in Canada unfortunately is otherwise. The 
frank explanations and regrets that were considered 
necessary following the Marconi transactions will long 
be remembered. But what would be thought of the 
First Minister and Secretary of War borrowing 
money from Kynochs — of the First Lord of the 
Admiralty obtaining a loan from Armstrong-Whit- 
worths — or the Postmaster-General from Signor 
Marconi — or the Chancellor of the Exchequer from 
the Tobacco Trust on the eve of a budget ? Is it 
necessary to say that the nation would hang its head 



WINNIPEG NEVER FORGIVEN 283 

in shame, honoured names would be buried in oWivion, 
and neither wealth nor position could protect the 
participating contractors and trusts from an indignant 
public. This also was the generally accepted standard 
of political life in the Dominion previous to the 
advent of Donald A. Smith into the Parliamentary 
arena at Ottawa. 

It is perhaps interesting to note that the western 
prairie city, built on the site of the old headquarters 
of the Hudson's Bay Company, has no mention in 
Lord Strathcona's Will. There is nothing to mark 
his association with that great outpost of civilization, 
from whence the Company exercised such undisputed 
sway over scattered tribes of uncivilized Indians. 
The reason why Winnipeg was omitted, notwith- 
standing its needs for hospital and university extension, 
is not a secret. Winnipeg as a part of the electoral 
district of Selkirk, under the widened franchise, 
declined to elect Donald A. Smith as its representa- 
tive to the Commons in 1880. Colonel Scott, a rough 
western diamond, contested the seat against the great 
railway magnate — and the people chose Scott. ^ The 
election in question was conducted under severe 
conditions. The other candidate was popular and a 
resident, and Donald A. was neither. This is not said 
in personal disparagement, because he was absent from 
the west a great deal, and he had other much more 
important matters in hand than endeavouring to curry 
favour with the shifting population of the new 
settlement. 

^ Appendix, 18. 



284 LORD STRATHCONA 

Nearly thirty years have elapsed since then. Win- 
nipeg has grown to be a city with a population of 
125,000. Its citizens are not those of its early days, 
but the action of a place called Winnipeg was never 
forgotten. 

As are the needs of Winnipeg, so are they of the 
western provinces. In the public schools of Winnipeg 
thirteen different nations or languages are now 
represented. Into that country people of every 
kindred, nation and tongue will flock for many years. 
They will require hospitals and colleges more than 
the thickly populated east. Perhaps the population 
in the distant future will read history and execrate 
the memory of those who opposed Donald A. Smith 
in 1880. In the meantime, however, the hundreds 
of thousands who have made their homes there in 
the last twenty years are witnesses to his munificent 
bounty in the United States, Britain, and eastern 
Canada. But the land which had been in truth to 
Lord Strathcona the Golden West, the land both of 
promise and of fulfilment, in which he had conceived 
his inspirations and cradled his ambitions — this land 
was not by his Will to have any of that stupendous 
fortune whose deepest foundations it had laid, and 
the corner-stone set when the rolling prairie laid bare 
her breast to the golden rivet which forged the last 
link in the girdle across the concinent. Yet, his wish 
was that none of the wealth that this wonderful 
country had so freely poured into his outstretched 
hands should ever return to help her even in the 
hour of need. 



A DISAPPOINTED DEPUTATION 285 

The Winnipeg of a generation later amply atoned 
for the severity of its early judgment, and in 1909 
gave Lord Strathcona a reception worthy of a monarch. 
An opportunity was afforded him of delivering the 
speech that was impossible so long as Archbishop 
Tach6 was alive. Yes, it may be argued, this is 
all true. But then a deputation interviewed him 
and pressed for a subscription for $1,000,000(^200,000) 
towards the Selkirk Exhibition. It took the gloss off 
the good feeling of the hour. Lord Strathcona 
received the deputation most affably. He promised 
to consider their request, and, if convenient, he 
would let them know his decision on his return from 
the Rocky Mountains. But the time did not prove 
convenient — his private car came through Winnipeg 
at midnight, the hour when all good citizens should 
be in bed. The deputation that was at the station 
to see him had not been notified that he was coming, 
but they had taken their own means to keep informed 
of the hour of his probable arrival. There was no 
invitation to enter the darkened car with the closely 
drawn blinds. The coloured porter " could not 
possibly allow his Lordship to be disturbed." Perhaps 
it had begun to dawn on Lord Strathcona's mind that 
the welcome given to him had some connection with 
the request for a million dollars. It is quite true that 
behind the scenes there had been warm discussions as 
to how much the " Grand Old Man " could be 
induced to " cough up." 

" Some one had blundered ! " 



XXX 

What Donald A. Smith has cost Canada — Kingdom stolen from the 
public heritage — What might have been if . . . — Public obhga- 
tions to be met — What the future will cost — The burden bearers 
— Strathcona's legacy to the Dominion — Ottawa and West- 
minster — Hope from Laurier and Borden. 

The cost to Canada of the influence that Lord 
Strathcona was able to exercise with parKaments, 
governments and statesmen, whereby the railway- 
across the continent passed from being an asset of the 
Dominion into the possession of himself and his 
associates, is incalculable. The cash subsidies paid to 
the syndicate for the construction of the main line ; 
special subsidies on branch, subsidiary and other 
subsidized railways absorbed by the syndicate ; and 
the cost of the sections constructed by the Government 
and handed over to the syndicate amounts to more 
than $75,000,000(^15,000,000). The land grants for 
the main line, and to other companies absorbed by 
the syndicate, will realize not less than $400,000,0000 
(^80,000,000). 

Add to these figures the subventions and subsidies 
to the other transcontinental railways that had at last 
to be constructed to compete with the Canadian 
Pacific, heavily subsidized in cash and guarantees, 

including the cost of the part of the Grand Trunk 

286 



WHAT HE COST CANADA 287 

Pacific constructed by the Government, and these 
items aggregate $600,000,000 (^120,000,000). The 
value of the land grants to these competing systems 
runs into $50,000,000 (_^i 0,000,000). 

These items aggregate in cash and land values the 
enormous sum of $1,125,000,000 (^225,000,000) : 
more than the entire cost of the Boer War to the 
tax-payers of Great Britain. In the case of the 
Boer War Great Britain secured a United South 
Africa. The Dominion on the other hand has nothing 
but the satisfaction of knowing that the railways run- 
ning through the country belong to others. 

To this add the indirect cost to the general public 
by the imposition of exorbitant freight-rates upon 
the toiling masses on the prairie lands of the west, 
and the figures loom up in a haze where language 
fails to find expression in arithmetical calculations. 

But that is not all. The land-grabbing that followed 
the adoption of the principle so energetically worked 
for by the syndicate, opened the door for the wholesale 
robbery of the public lands only then made possible. 
Sir J. A. M. Aikens, K.C., M.P., of Winnipeg, in a 
speech in the House of Commons, in the early part of 
May 1914, made the astonishing statement that no less 
than 43,000,000 acres, or 65,000 square miles of land, 
all in the fertile belt of the prairies, the finest wheat- 
growing land in the world, had been given away to 
railways and other corporations in the last thirty years. 

This means that a territory nearly twice the size 
of Ireland, or an area larger than England and Wales, 
or greater than Belgium, Holland, Denmark and 



288 LORD STRATHCONA 

Greece together, has passed out of the possession of 
the people of Canada for no return whatever to the 
pubhc treasury. This may seem inconceivable, but 
it is absolutely true. The fact becomes more evident 
than ever, that if Donald A. Smith had never suc- 
ceeded in getting possession of the charter for the 
Canadian Pacific Railway, this shameful sacrifice of 
an invaluable heritage could never have been made. 

Had the Canadian Government expended the 
necessary part of the $600,000,000 (^/^ 120,000,000) 
represented in the form of cash and guarantees, as 
Alexander Mackenzie and the patriots who supported 
him loyally decided should be done, the Dominion 
would own to-day every mile of the three trans- 
continental lines. This calculation makes no allowance 
for the value of the land, free grants of which to cor- 
porations would not have been made, but the proceeds 
from which would be a national asset. 

A statement of these facts is necessary to a history 
of the times to which reference is being made. It 
will be well for the present and future generations to 
calmly realize the consequences following injudicious, 
ill-advised, or corrupt handling of a national heritage. 
The people have not finished with the question yet. 
Lord Strathcona's syndicate will be the ever-present 
death's-head at the feast for many years. The account 
is far from being settled. More than one government 
will come and go before the bill is finally paid. 

Enormous grants have been made to competitive 
transcontinental lines. But the wealth of the Canadian 
Pacific, so generously endowed by the public, gives 



GRINDING THE FARMERS 289 

the railway a tremendous advantage over the others. 
It is well known that this line is able to earn a good 
dividend for its shareholders upon a schedule of rates 
which, if generally adopted, might seriously affect 
the financial position of the others ; even though this 
is, to a certain extent, compensated for by the much 
easier grades and the larger train-loads that can be 
transported by the routes adopted on the later con- 
structed lines. The general public interest will 
demand, however, that all invidious distinctions shall 
not be allowed to continue. 

The Canadian Pacific has reduced its rates only 
when compelled to do so by Parliament, or by the 
Railway Commission. In the threatened action of 
the latter, the attitude of the Company was : " Do it 
if you will. We can stand it better than the others, 
and your securities will pay the difference on the 
London market." 

The public must either pay the penalty in their 
financial dealings with London, or the farmers must 
contribute to the inflated rates for the delivery of 
their products to market-centres. There is no escape 
from one or other of these hard facts. And sooner 
or later this extraordinary situation will have to be 
faced by Parliament. 

To allow present conditions to continue means that 
the hard-working agriculturists of the country — the 
class that should be encouraged rather than trodden 
underfoot — must bear the brunt of the burden. 
This is one of the great problems the syndicate has 
bequeathed to future generations in Canada to solve. 



290 LORD STRATHCONA 

The west, with fifty or sixty members in the House 
of Commons, will swing the pendulum of political 
supremacy. No party lines will prevail. The greatest 
possible measure of relief will be demanded, and the 
demand will not be as a voice crying in the wilderness. 
One or two alternatives will have to be faced — to 
cancel in whole or in part the loans that have been 
made by the Government of Canada to the trans- 
continental companies competing with the Canadian 
Pacific, so as to place them all on a reasonably even 
footing ; or secure Government control of these 
railways at an additional cost to the Dominion 
Treasury of from two to three hundred million 
dollars. In any case high courage will be demanded 
in the solution of this problem. 

It may as well be acknowledged from the beginning 
that the wealthier corporation will not be allowed to 
absorb or control either of the transcontinental com- 
peting lines. A deal of such a nature would be 
disastrous to too many " vested interests." Public 
patience would then reach the breaking-point. 

The odds are that the situation will be relieved by 
the abandonment of Government claims for loans or 
assistance to the new railways, combined with a far- 
reaching policy of protection to the producers of the 
country. The question, until it is permanently 
settled, will dominate Canadian politics more certainly 
than Irish interests control Westminster. Until it 
is disposed of the Dominion will be overshadowed 
by forces which threaten to sap the foundations of 
the liberty of the people. There is no escape to any 



IF PATRIOTISM HAD WON 291 

Government from the penalty of neglecting to face 
their responsibility in this matter. 

The agricultural classes of the Dominion are the 
backbone of the country. Without the wealth that 
is gathered from the soil Canada would be bankrupt. 
Its hope for greatness is in its agricultural possibilities. 
But as a class the farmers are the least likely to have 
their interests considered by Governments and Par- 
liaments in North America. For some unexplained 
reason the urban influence predominates. In European 
countries the agricultural population is looked upon 
as the bulwark of the state — the source of wealth, 
strength and future greatness. In every Parliament 
their requirements receive special consideration ; 
Germany, France, Austria, Hungary, Holland, Den- 
mark and Scandinavia telling the same story. The 
farmers are fast reaching the point when they must 
make themselves masters of the situation at Ottawa. 
When they do, the electors will have an opportunity 
of still further realizing the financial obligations that 
must be met on account of the wealth and privileges 
that their legislators in 1880 conferred on a remarkable 
syndicate of presumptuous " Empire-Builders." 

Instead of the situation as it is, what might it have 
been had Donald A. Smith been thrown into ordinary 
commercial life in those stirring times that were 
taking place in Old Canada on his arrival, and in the 
subsequent years ? Had he mingled with Papineau 
and Taschereau, Holton and Dorion, Mackenzie and 
Brown, Gait and Howe, perhaps he would have been 
moulded like one of them. How different would have 



292 LORD STRATHCONA 

been the history of the last thirty years ! What a 
heritage the Dominion would now possess ! If, at 
times as he went his way, he found the chains galling 
that bound him to the course he was taking, he could 
comfort himself with the thought that they were one 
with the gold which was ever his lodestar. To call 
Lord Strathcona an " Empire-Builder " is a misnomer. 
If others follow in his footsteps they will be Empire- 
Wreckers. 

With the passing of Lord Strathcona, the " last of 
the Mohicans," members of the original syndicate are 
not now identified with the railway. Two of the 
signatories to the agreement are still living, — J. J. Hill 
and Lord Mount Stephen. It is understood, however, 
that both long since parted with their shares. The 
time, therefore, seems opportune for an abandonment 
of the policy that was inaugurated by Lord Strathcona 
and his associates, and is still continued, to justify 
the active participation of the Montreal management 
in the general politics of the Dominion. 

This legacy to Canada from Lord Strathcona presents 
serious aspects, the full meaning of which must sooner 
or later be thoroughly understood by the electorate. 
For thirty years the Canadian Pacific Railway has 
been a dominating force in the Parliamentary life of 
the Dominion. Senators and Members of the House 
have been publicly retained by this great corporation. 
Cabinet Ministers have borrowed large sums from 
individual members of the syndicate, which they were 
never asked to repay. The acquiesence of Parliaments 
and Governments to ever-recurrent demands of 



THE HONOUR OF PARLIAMENT 293 

railway lobbyists was, therefore, obvious. Directors 
of the company, having seats in Parliament, with 
most engaging candour and frankness, are listened to 
calmly while they argue in favour of, or in opposition 
to proposed legislation solely from the standpoint as 
to how the interests of the company will be effected. 
Compared with representative legislative chambers 
throughout the world, the situation in Canada has no 
parallel. It is inconceivable to any student of British 
Parliamentary institutions, either in Great Britain, 
New Zealand, Australia or South Africa. Yet Cana- 
dian statesmen, within the four walls of Parliament, 
and politicians outside, flatter themselves with the 
idea that their legislative procedure is modelled on 
the lines of Westminster. To an impartial observer 
the contrast is appalling ! The slightest suggestion 
that a Peer was acting as the representative of any 
corporation, or that a commoner owed his election 
to the assistance or influence of a corporation or con- 
tractor in receipt of grants from the public treasury, 
or that a Cabinet Minister had borrowed large sums 
of money from anyone whose personal interests were 
involved in departmental favours, would ensure drastic 
action by both sides of the House. Political warfare 
in English public life is bitter, political aflSliations are 
powerful, but the honour of Parliamentary represen- 
tation overshadows every other consideration. The 
domination or influence of Parliament by corporations 
or contractors, whether earning public money or 
not, is regarded as absolutely incompatible with the 
dignity and purity of British public life. 



294 LORD STRATHCONA 

If there is one national characteristic more prominent 
than another which impresses all visitors to Canada 
it is the ardent loyalty of the people. The opinion 
finds frequent expression that " Canadians are more 
loyal than the King." It is not a passing sentiment, 
but is an integral part of the national life. And, yet, 
what was said to the rich young man may be repeated 
to Canada, " One thing thou lackest." In this case 
it is an appreciation of the dignity and purity of 
parliamentary life. The Canadian people wish to 
follow in the footsteps of the Mother-country. With 
their lips, at least, looking towards Westminster, they 
repeat what Ruth said to Naomi: "Whither thou 
goest, I will go. Thy people shall be my people. Thy 
God shall be my God." But the national conscience 
has been seared as with a hot iron. This is the result 
of the sordid influences exercised in Dominion poli- 
tics from the time the possession of the great trans- 
continental railway passed from the Government to 
the Canadian syndicate. 

The immediate hope of freeing parliamentary life 
from such a legacy is threefold : the leaders of the 
two political parties, the British and European 
directorate of the Canadian Pacific Railway, and the 
large accession in recent years to the British-born 
population of the Dominion. 

There is a slumbering force throughout the Do- 
minion that will yet insist upon Government con- 
forming to the loftiest British traditions. Sir Wilfrid 
Laurier and Sir R. L. Borden, in private life and 
public ideals, represent the highest aspirations of 



POLITICAL LEADERS WHO ARE PURE 295 

political purity. They each have many influential 
followers who would gladly purge Parliament of every 
influence that is inconsistent with the honour and 
dignity of a healthy democratic administration. 
Whether they will co-operate or act independently on 
this question remains to be seen. 

There may be justifiable disagreement with the 
political views of both Sir Wilfrid Laurier and Sir 
R. L. Borden, but there is none in regard to their 
political morality. Not a breath of scandal has 
touched their careers. In view of occasional warped 
judgment among followers, with whom each has had 
to associate, the wonder is that the outlook is not less 
favourable. An atmosphere that has, in a more or 
less degree, vitiated the political arena for thirty 
years, cannot be easily purified. It may, perhaps, 
only be altogether successfully accomplished by leaders 
yet unknown. But progress is being made in the 
right direction. Within a few years public opinion 
will demand the enactment of law, rendering election 
subscriptions from corporations and contractors in- 
dictable offences, and interference in parliamentary 
elections by managers of corporations that have been 
subsidized by the public treasury punishable with 
imprisonment. Canada will never have freedom of 
government until this is done. The Dominion 
Parliament will yet be free, and the time will come 
when no political leader will be strong enough to give 
a portfolio in his Cabinet to any public man who has 
accepted money from those having dealings with the 
public service. 



296 LORD STRATHCONA 

If the British and foreign directors are wise they 
will not fail to insist that the unwarranted interference 
of this corporation in the political life of the Dominion 
shall cease. 

Then, if neither of these influences can be successfully 
exercised, the hope of the Dominion rests with the 
one million British immigrants who have settled in 
Canada during the last fifteen years co-operating with 
the large leaven of Canadian honesty that has been 
untouched by corruption. The British immigrants 
know how untarnished is the parliamentary escutcheon 
of the Mother-country, and how carefully it has been 
protected for many generations. That they will 
desire that the land of their adoption should be 
marked by the ideals that have been reached through 
great tribulation in this country there should be no 
question. 

If it happens that the people of Canada are only to 
secure a Parliament modelled upon British ideals as 
the result of public agitation, it may be taken for 
granted that the $10,000,000 (^2,000,000) that are 
freely alleged to have been taken from the corporation 
by the syndicate and those in charge of the management 
of the railway, to corrupt the public life of Canada, 
will find its way back to the innocent shareholders ; 
just as surely as the British Parliament unanimously 
demanded the personal repayment of the j[^200 by 
the Directors of the London and North Western Rail- 
way, which they had subscribed from the company's 
funds for political purposes. The plea of " vested 
rights," or the Statute of Limitations, will not avail. 



XXXI 

A retrospect — The Hudson's Bay Company retarding Canada — Thirty 
years too late — Romance of Canadian life — Hope for the future 
— A fascinating personality — The records of irrevocable history. 

The Winnipeg of 1907 should have been in existence 
thirty or forty years earher. Before Canada secured 
possession of the Hudson Bay Territory the national 
life of the country had been crippled from lack of 
opportunities for expansion. The farming population 
of the old provinces had reached the third generation, 
and they had to look around for new homes. It is 
the history of agricultural life in Canada, as well as 
in the United States, that the third generation 
produces the development of a character that neces- 
sitates either a larger area for cultivation than is 
available in the older settlements, or is inclined to 
go into town life. There was no room for such on 
the old homesteads, or in the neighbouring towns. 
To remain at home, and have the family property 
divided and redivided, meant limiting their capabihty 
and narrowing their aspirations. They, therefore, 
were compelled to look elsewhere. Many to whom 
these conditions applied were descendants of those 
United Empire Loyahsts, who preferred, after the 

revolution (1775-83), to settle in the wilds of Canada, 

297 



298 LORD STRATHCONA 

rather than live under the flag of the new Republic ; 
others were the descendants of the first immigrants 
from Great Britain ; and Lower Canada also furnished 
a large quota of restless spirits for whom there was 
no room around the old firesides. The vast majority 
of these would rather have settled somewhere under 
the British flag. But there was no place available. 

That portion of the North American continent 
under British control, which should have furnished 
homes for all of them, was then in the unrelenting 
grasp of the Hudson's Bay Company. They had kept 
it thirty years too long. An exodus began of the 
flower of the population from Canada to the United 
States. Once having started, like all such streams, 
it grew ever larger and larger, until it assumed pro- 
portions that were absolutely appalling. The latest 
official returns from the United States furnish the 
proof that no less than 1,250,000 native-born Canadians 
have homes in the Republic. Without question they 
are lost to the British Empire. They and their families 
at this moment number more than 6,000,000 souls. 

Had there been no Hudson's Bay Company, or had 
the company not deliberately prevented the expansion 
of western Canada for so many decades after it should 
have been open to the world, the population of 
Canada would now be nearer twenty than seven 
millions. If the Stuart dynasty blighted English 
history, it also cast its evil spell over Canada at the 
time the Hudson's Bay Company was chartered. For 
the sake of the private interests of a few friends of 



HEROES IN THE BACKGROUND 299 

the monarch who wanted to traffic with a public 
franchise, an incalculable loss of millions of a sturdy 
race of people was inflicted on the Empire. 

Canada has had its fair share of difficulties in the 
past. It has been struggling mostly, until now, with 
the necessaries of life. Romance and fancy have been 
largely left out of her category of good things. But 
these, with the other sides of intellectual life will, in 
course of time, assert themselves. There have been 
many men in Canada whose lives would furnish 
inspiration for poetry and romance. Away in the 
interior, in the lonely struggles of the early pioneers, 
there have been great deeds done, and these have left 
a heritage of good that is moulded into the very fibre 
of the people. 

The country has not been without its hero-worship. 
That is inevitable wherever civilization exists. In the 
early days this was to be found in the memories of 
General Wolfe and General Brock. The one lost his 
life in winning a continent for the Empire, the other 
in saving it from the invaders' grasp half a century 
later. They were followed by the heroes of the 
" Family Compact " — a class modestly satisfied with 
securing for those within their own circle the offices 
of emolument at the disposal of the Crown, and who 
guarded the public lands, with an almost religious 
fervour, as a sacred heritage for those who might 
come after. Then came the heroes of the rebellion 
of 1837-39, °^^ ^^ whose great tribulation appeared 
the dawn of responsible government. The money- 



300 LORD STRATHCONA 

making hero is now prominent in Canadian life. The 
whole community vibrates with earnestness before 
the shrine of wealth. The charm of success has ap- 
pealed to these sober people, who know the struggle 
and toil only too well, and who are everywhere called 
on to judge the value of the much by their own hard- 
earned little. 

It was only in the later days that land-grabbers and 
charter-hunters appeared. No one envies either their 
positions or their riches, but the time has come when 
they shall not continue to lay unholy hands on the 
ark of the covenant — for such is the government of 
the country. Ever to have introduced methods into 
a young country tending to lower the standard of 
political life is a serious offence — to have persisted on 
that line for a quarter of a century is criminal. A 
young country, like a youth entering upon the re- 
sponsibilities of manhood, has nothing equal in value 
to a true discrimination between right and wrong. 
Once weaken that moral sense and the responsibility 
is serious — to continue the destroying influence, and no 
palliation can be offered for such a crime. Parliaments 
were created to wrench from Crowns the control of 
public interests that were being exercised for personal 
gain. They were never intended as media for the 
creation of private wealth. 

In Canada, Parliament has been used for the most 
improper purposes, under the most extraordinarily 
demoralizing influences that ever became operative 
among a free people. The Donald A. Smith syndicate 



THE PROBLEM TO BE FACED 301 

is entirely responsible for this state of affairs. To 
rid itself of the accumulated evils in the body politic, 
resulting from the continual prostitution of a legislative 
body which had been left without a single blemish by 
the earlier statesmen of the country, is the problem 
now to be solved in Canada. 

" How we can only wait till the day, wait and apportion our shame. 
These are the dykes our fathers left, but we would not look to the 

same. 
Time and again we were warned of the dykes, time and again we 

delayed, 
Now it may fall we have slain our sons as our fathers we have 

betrayed. 

Walking along the wreck of the dykes, watching the work of the 

seas, 
These were the dykes our father made to our great profit and ease. 
But the peace is gone and the profit is gone, and the old sure day is 

withdrawn . . , 
That our house shows so strange when we come back in the dawn." 

Kipling: The Dykes. 



APPENDIX 

1. Committee of the House of Commons, 1874, re 
North-west Rebelhon. 

2. Resolution proposed by Hon. L. S. Huntingdon, 
charging Ministers with receiving money from Sir 
Hugh Allan in consideration of the charter for the 
Pacific Railway, 1873. Committee of Inquiry by the 
House of Commons, and Royal Commission issued by 
the Governor-General. 

3. Steenerson v. Great Northern Railway, 69, Min- 
nesota, 372, by Judge Canty — 

" Of the lines of railway here in question, 565 
miles were built and owned by other railroad 
companies prior to the foreclosure sales of 1879. 
At one of these sales the promoters of the St. Paul, 
Minneapolis and Manitoba Railway bid off a part 
of the property (for $1,500,000 as shown in the 
court records of St. Paul) and the company itself 
after it was organized bid in the rest of the said 
property. These properties, the franchise con- 
nected with the same, and a large land grant 
earned and to be earned, were bid off for the 
aggregate sum of $3,600,000, subject to a prior 
lien of $486,000. The promoters transferred to 
the new company the part bid in by them, and 
the properties were immediately bonded by the 
new company for $16,000,000, and it issued 
to the promoters its stock to the amount of 
$15,000,000." 

302 



APPENDIX 303 

4. Extract from the Hansard of the House of 
Commons, filed in the Library of the Colonial Office, 
Downing Street — 

House of Commons, Friday, May 10, 1878. 
The Speaker took the Chair at twenty minutes to 
three o'clock. 

Prayers 
Question of Privilege 

Mr. Smith (Selkirk) : I rise to a question of privilege. 
I notice by one of the public prints of Ottawa that 
the Right Hon. member for Kingston (Sir John 
Macdonald) — has spoken of me in this House in a 
manner which, I think, I can characterize as most 
unfair and most unjustifiable. I will read what is 
stated in the Free Press. It is as follows — 

" A brief but violent discussion arose over the 
action of the Senate with regard to the Pembina 
Branch. The Premier severely criticized the 
conduct of the Senate in throwing out this Bill, 
and was followed by Sir John A. Macdonald, 
who insinuated that the Bill was merely an 
arrangement by which the Government could 
reward a Member of the House for his servile 
support, and that this member had been com- 
pelled to admit in the House that he was interested 
in this monopoly." 

In the first place I say I never did make such an 
admission in this House to the hon. gentleman, and 
even had I done so, I think that the hon. gentleman 
had no right to speak of me as he did on that occasion. 
Whatever I have done in this respect I have done in 
the most open manner possible. When it was found 
that others could do nothing in the way of getting 
better railway facilities and completing the railway 
connection with Manitoba, I certainly, as Member 



304 APPENDIX 

from that province, did my utmost to effect that. 
And, as I said on another occasion in this House, for 
two or three years back I have laboured earnestly to 
that end in connection with some friends, and no 
sooner did it become possible to get that which was 
so much required — indeed an absolute necessity for 
the country — than the hon. gentleman and his friends 
put every obstacle in the way of its being carried out. 
He comes down to this House and says that the 
Government are actuated by unworthy motives in 
proposing to make running arrangements with the 
St. Paul and Pacific Company over the Pembina 
Branch and that it was their intention to reward me 
in this way for my servile adherence to them. Now, 
I would like to ask the hon. gentleman the member 
for Kingston and any other member of his Govern- 
ment, if on any occasion they found a disposition on 
my part to ask or receive any favour from the Govern- 
ment, either for myself or for that corporation which 
has been so much spoken of and which I have had the 
honour of representing — that is the Hudson's Bay 
Company. I would ask the hon. member if I have 
received one sixpence of public money or one place, 
either for myself or any other person connected with 
me, and if at this moment there is one single person 
related to myself who receives one sixpence of the 
public money ; and I would ask the hon. member 
if this is so with all those who may have claims upon 
himself. But perhaps it would not be very generous 
to refer to these matters particularly. 

Sir John A. Macdonald : Refer to what ? 

Mr. Smith : This is 

Sir John A. Macdonald : What would it be un- 
generous to refer to ? 

Mr. Smith : I mentioned that there was not one 
relative of mine who drew one sixpence of the public 
money, who held any place in the public service, and 



APPENDIX 305 

said, perhaps, it might be otherwise with those con- 
nected with and related to the Right Hon. Gentleman. 

Sir John A. Macdonald : Hear, hear. 

Mr. Smith : Not that there would be anything 
wrong even if it were so, as regards the hon. gentle- 
man's friends, but I say I always desired to keep myself 
entirely free and independent with regard to these 
matters of one government or of the other govern- 
ment. I would ask the hon. gentlemen on this side 
of the House if I have desired any favour for myself 
or anything for any one except for such of my con- 
stituents as have applied to me for places under the 
government ; and I ask, further, if, on any one oc- 
casion, where I have recommended a single individual 
for any place, or any position, or any appointment, 
I have done so without the saving clause that it was 
conditional on his being found in every respect well 
fitted for it, both as to character and ability. This 
unwarrantable attack of the Right Hon. gentleman 
is but a continuation and repetition of what he and 
his friends have been saying of myself, both inside and 
outside of this House, for some time back. The hon. 
gentleman who sits on his left, the hon. member for 
Cumberland (Dr. Tupper), has not been slow to use 
my name, as I find by another public print. I find 

that the hon. gentleman says I think it was at 

what is called the Orangeville picnic. I know very 
little of these picnics, I have not followed them 
closely, nor indeed have I followed them at all. I 
was otherwise I trust honestly and more properly 
occupied in the pursuit of my duties. 

Sir J. A. Macdonald : More profitably engaged, 
no doubt. 

Mr. Smith : I trust so — more profitably and more 
properly. I find that the hon. gentleman, the 
member for Cumberland, says here, speaking of 
certain names that were given in the Globe of those 



306 APPENDIX 

who did not support the Right Hon. gentleman at a 
critical moment in 1873 

Mr. Tupper : Mr. Speaker, I rise to a question of 
order. 

Mr. Smith : It will be remembered that — — 

Mr. Speaker : A question of order is raised. 

Mr. Tupper : I rise to a question of order, and I 
put it to you, whether it is not an abuse of the right 
to read from a newspaper, for the hon. gentleman 
has had that speech here during the three months 
that we have been in session, and to speak at the 
moment when Black Rod is coming to the door, and 
thus to shelter himself from the answer which he 
would otherwise get. 

Sir John A. Macdonald : And the punishment he 
would otherwise get. 

Mr. Smith : I have had no such opportunity. 

Mr. Tupper : A more cowardly thing I have never 
seen ventured on in this House. 

Mr. Smith : I am not surprised at this from the 
hon. gentleman. 

Mr. Tupper : Anything more cowardly I have never 
heard of. I am responsible for every word I have 
uttered on the platform. I have sat here for three 
months, and no reference had been made to this by 
the hon. gentleman or anybody else 

Some Hon. Members : Order. 



Mr. Tupper : Neither the hon. gentleman 

Some Hon. Member? : Order. 

Mr. Tupper : Nor any other hon. gentleman 

Some Hon. Members : Order. 

Mr. Tupper : Has ventured to challenge one word 
I have uttered during the recess of Parliament. 

Mr. Smith : The charge of being a coward I throw 
back on the hon. gentleman. 

Sir John A. Macdonald : Let the poor man go on. 

Mr. Smith : The hon. member for Cumberland 
said — 



APPENDIX 307 

" He would give his hearers the names men- 
tioned by the Globe as having left because of the 
Pacific scandal. It would be remembered that the 
Government of that day had a majority of from 
twenty-five to thirty in 1872, and in order to 
gain a majority, the Opposition had to take half 
of them away. How many of them did the 
Globe mention ? Would his hearers believe it ? 
Three. But they who did suppose were paraded 
before the people in that connection ? He would 
read their names. For what purpose did Mr. 
Glass, Hon. D. A. Smith, and Colonel Ray, not 
to mention others — all men who had supported 
Sir John A. Macdonald in the first session of 
1873 — desert Sir John but for his conduct in 
connection with the Pacific scandal ? Then 
they said Hon. D. A. Smith. Did the Globe 
suppose the people of Canada had no memories, 
and they that did not know that Hon. Mr. Smith 
gave unqualified evidence that the Canadian 
Pacific Railway had nothing to do with his 
changed attitude towards Sir John A. Macdonald ? 
Mr. Smith was a representative of the Hudson's 
Bay Company and he had been pressing a claim 
on his Right Hon. friend for public money ; 
Sir John had been holding back, and Mr. Smith 
came to the conclusion that it would be just as 
well to jump the fence if there was to be a change 
of Government. But Mr. Smith was a canny 
man ; he held back and sat on the fence and 
watched the course, certainly not in the interests 
of his country, because he did not want to jump 
too soon and find that he had jumped into a 
ditch. But, when he came to the conclusion that 
the Government was going out, he made the 
bolt, and he (Dr. Tupper) had no doubt but that 
he had had a great deal of reason since for con- 
gratulating himself on having jumped as he did." 



808 APPENDIX 

Mr. Smith : That is the insinuation, the broad 
assertion, made on the part of the hon. member for 
Cumberland at his picnic, and reiterated here, and I 
give it the most positive denial, and say that never 
was anything received by me or desired by me from 
the present Government any more than from the 
former Government. What are the particulars of 
this affair of 1873, as regards myself ? Does the hon. 
gentleman not know ? And does not the Right Hon. 
gentleman know, too, that members of the late 
Government approached me before the eventful 4th 
of November, and that they wished to sound me and 
know how I was going to vote in this matter ; and that, 
some days in advance of that time, I was requested 
to meet the hon. member for Charlevoix in the 
Speaker's room, and did meet him there ? And do 
they not know that an hon. gentleman from the 
other House, the Hon. Mr. Campbell, a gentleman 
for whom I have a very high respect personally, also 
met me there, and that to both these gentlemen 
during a long interview, at which was present also 
another gentleman who was then likewise a member 
of this House — Mr. Nathan, a personal friend of mine 
— I declared that I could not vote for the amendment 
to the amendment that was even offered by Mr. 
Macdonald of Pictou ? Do they not know I said : 
" No, I cannot do so ; I cannot possibly do so ; I 
cannot conscientiously do so." 

Mr. Tupper : Does the hon. gentleman deny 

Some Hon. Members : Order. 

Mr. Tupper : That he telegraphed down here 

Some Hon. Members : Order. 

Mr. Tupper : That he would be here and support 
the Government 

Some Hon. Members : Order. 

Mr. Tupper : After he knew everything about the 
Canadian Pacific Railway affair ? Does he deny that ? 



APPENDIX 80& 

Mr. Smith : I do deny it. I never telegraphed I 
would be here and support the Government. Never, 
never. I know that the Right Hon. gentleman wrote 
me, asking me to come down, but the lion, gentleman 
cannot say — dare not say — I ever telegraphed I would 
support the Government, and no other hon. gentle- 
man can say so. 

Sir John A. Macdonald : I will tell you what I can 
say. 

Some Hon. Members : Order. 

Sir John A. Macdonald : I telegraphed the hon. 
gentleman. 

Some Hon. Members : Order. 

Sir John A. Macdonald : He dare not listen to an 
explanation. 

Mr. Smith : On the occasion referred to in the 
Speaker's chamber, I said that I could not support 
the Government, but I offered and proposed that 
there should be another amendment, and a very 
different one : that is, the Government should frankly 
confess their fault to the House, and then, if the 
country condoned it, and Parliament condoned it, it 
would be a very different thing. That is what I 
proposed to the hon. gentleman, and this was 
reduced to writing at the time. 

Mr. Tupper : That 

Some Hon. Members : Order. 

Mr. Tupper : Is not what you telegraphed. 

Sir John A. Macdonald : Hear, hear. 

Mr. Smith : The hon. gentleman is altogether in 
the wrong. I telegraphed simply in courtesy in reply 
to a letter that I would be in Ottawa by the 23rd 
October. I saw the Right Hon. gentleman himself 
in one of the rooms. He sent for me. Mr. Mitchell 
came and informed me that the hon. member for 
Kingston desired to see me ; and let me say to Mr. 
Mitchell's credit, that he has got up in many an 



810 APPENDIX 

assembly where I have been and said I was perfectly 
justified in doing as I did, as Mr. Mitchell knew all 
the circumstances. 

Sir John A. Macdonald : I am sure he did not. 

Mr. Tupper : Will the hon. gentleman name 

Some Hon. Members : Order. 

Mr. Tupper : One single meeting where Mr. 
Mitchell ever made such a statement anywhere, and 
where the record of it is to be found, except out of 
the hon. gentleman's own mouth 

Some Hon. Members : Order. 

Mr. Smith : I could do so. 

Mr. Tupper : And that goes for a very little in 
this House or out of it. 

Mr. Smith : I can bring forward a number of 
gentlemen of high respectability, whose word will be 
taken all over the country and all over the world. 

Mr. Tupper and Hon. Members : Name, name. 
Where, where ? 

Mr. Smith : I could mention a dozen. 

Some Hon. Members : Name. 

Mr. Smith : A dozen most respectable men in 
Montreal, and some in Ottawa, too. 

Some Hon. Members : Name. 

Mr. Smith : A dozen of them. 

Mr. Tupper : I never heard of these meetings and 
statements. 

Mr. Smith : And if necessary I am prepared to do 
so at another time. On the occasion spoken of, I did 
see the hon. gentleman in the room. I think it was 
No. 6 or 5, and the hon. gentleman then did try to 
persuade me to vote for him, but the hon. gentleman 
will not dare to state I said I could support him ; and 
what did the hon. gentleman say to me then at 
length 

Some Hon. Members : Order. 

Mr. Smith : He said, " If I am not supported now 



APPENDIX 811 

I will appeal to the country." The Right Hon. 
gentleman during the present session spoke of Selkirk 
— the constituency I have the honour to represent — 
as being a rotten borough, an Old Sarum, but in 
speaking to me as he did on the evening of that 4th 
November^ he must have counted on the whole of 
Ontario being one great rotten borough, a veritable 
Old Sarum, and he said that if he appealed to it he 
could have Ontario to a man with him. 

Some Hon. Members : Hear, hear. 

Sir John A. Macdonald : There is not one single 
word of truth in that statement — not one single word 
of truth. The hon. gentleman is now stating what 
is a falsehood. 

Mr. Rochester : How much did the other side 
offer you ? 

Mr. Smith : The hon. gentleman says he did not 
say so ; certainly, the spirit within him said it ; for 
the words came out of the hon. gentleman's 
mouth. 

Some Hon. Members : Order. 

Mr. Smith : If he did not say so, the spirit within 
him did. These words were uttered by the hon. 
gentleman. 

Sir John A. Macdonald : They were not uttered 
by me. 

Some Hon. Members : Order. 

Sir John A. Macdonald : They were not uttered 
by me. 

Mr. Smith : They were as surely as the hon. 
gentleman and I are here. 

Some Hon. Members : Order. 

Mr. Smith : The hon. member for Cumberland 
the same evening told me that the Right Hon. gen- 
tleman was not capable of knowing what he said ; 
and will he deny 

Some Hon. Members : Order. 



812 APPENDIX 

Mr. Smith : The hon. member for Cumberland 
said next morning 

Some Hon. Members : Order, 

Mr. Tupper : Mr. Speaker, I rise to a question of 
order, and I want to ask you whether it is competent 
for any hon. gentleman to stand up in this House 
and detail what he himself admits are private con- 
versations. Is it competent for a man to detail private 
conversations while falsifying them ? 

Some Hon. Members : Order. 

Mr. Tupper : And his word passes for nothing here 
or elsewhere. 

Some Hon. Members : Order. 

Mr. Tupper : I have never witnessed such — — 

Some Hon. Members : Order. 

Mr. Tupper : Cowardly abuse of — — 

Some Hon. Members : Order. 

Mr. Tupper : Of the privileges of this House, as 
for an hon. gentleman to be guilty of making a 
speech when there is no possibility of a reply being 
made to it. 

Mr. Smith : The hon. gentleman 

Mr. Speaker : The hon. gentleman is defending 
himself against a very grave charge made against him. 

Mr. Smith : The relating of private conversations 
may be held to be very improper, but it is not un- 
parliamentary. 

Mr. Tupper : I do not complain of the relating of 
private conversations ; I complain 

Some Hon. Members : Order. 

Mr. Tupper : I complain of the hon. gentleman 
falsifying private conversations and detailing that as a 
conversation which he knows to be falsified. 

Mr. Smith : I do not look upon them as private 
conversations and I give the exact truth. I was sent 
for as a member of the House by the gentleman at 
that time the head of the Government, and he 



APPENDIX 313 

Some Hon. Members : Order. 

Mr. Smith : Endeavoured to get me 

Mr. Tupper : Will the hon. gentleman 

Mr. Rochester : They could not give you enough. 
Mr. Smith : Will he deny that the next morning 

when I met the hon. gentleman here, who is on the 

other side 

Some Hon. Members : Give 



Mr. Smith : At Mr. Tupper's office when he was 
Minister of Customs. Will he deny he said to me 
that as soon as it was possible to make the Right Hon. 
gentleman to understand right from wrong, or to 
that effect 

Mr. Tupper : The hon. gentleman has asked if I 
will make a statement. 

Some Hon. Members : Order. 

Mr. Tupper : I tell him that if he will allow me 
five minutes 

Some Hon. Members : Order. 

Mr. Smith : Only for an apology. 

Mr. Tupper : I will show that the very first state- 
ment he commenced with to-day 

Some Hon. Members : Order. 

Mr. Tupper : The statement that he never sought 
a favour from the late Government 

Some Hon. Members : Order. 

Mr. Tupper : Is as false a statement 

Some Hon. Members : Order. 

Mr. Tupper : As ever issued from the mouth of any 
man, and he has continued 

Some Hon. Members : Order. 

Mr. Tupper : With a tissue 



Some Hon. Members : Order. 

Mr. Tupper : Sir, of as false statements as were ever 

uttered 

Some Hon. Members : Order. 
Mr. Tupper : By any man. 



814 APPENDIX 

Some Hon. Members : Order. 

Mr. Tupper : That is what I will show him. 

Mr. Smith : I never asked, prayed for, desired, or 
got a favour from the late Government. 

Mr. Tupper : Will the hon. gentleman allow me 
to tell a favour he asked for ? 

Some Hon. Members : Order. 

Mr. Tupper : The hon. gentleman begged of me 
to implore 

Some Hon. Members : Order. 

Mr. Tupper : The leader of the Government to 
make him a member of the Privy Council of Canada. 

Some Hon. Members : Order. 

Mr. Tupper : That is what he asked for, and he 

Some Hon. Members : Order. 

Mr. Tupper : Was refused ; and it was the want of 
that position, and that refusal, which, to a large 
extent, has placed him where he is to-day. 

Some Hon. Members : Order. 

Mr. Smith : The hon. gentleman knows that he 
states what is wholly untrue, and, driven to his wits' 
end, is now going back to a journey he and I made 
to the North-west in 1869, and I give the most 
positive denial to any assertion made by him or any 
other person, that I asked for or desired any favour 
from the Government. 

The Serjeant-at-Arms : Mr. Speaker, a message 
from His Excellency the Governor-General. 

Some Hon. Members : Order. 

Mr. Smith : I now 

Mr. Speaker : I have very much pleasure in in- 
forming the House that it now becomes my duty to 
receive the messenger. 

Some Hon. Members : Order. 

Mr. Smith : He knows 

Mr. Tupper : Coward ! Coward ! Sit down ! 

Mr. Speaker : I 



APPENDIX 815 



Mr. Smith : He knows- 



SoME Hon. Members : Order. 

Mr. Tupper : Coward ! Coward ! Coward ! 

Mr. Smith : You are the coward. 

Some Hon. Members : Order. 

Mr. Smith : Nay, further, there were two gentle- 
men, members of this House 

Some Hon. Members : Order. 

Mr. Smith : The day after that 4th of November 

Mr. Tupper : Coward ! Coward ! 

Mr. Smith : Who came to me with a proposition 
to throw over the Right Hon. gentleman and the 
present member for Charlevoix, if I would consent 
to give up the position I had deem_ed it my duty to 
take in the House the evening before, and would 
support the Government by voting against the 
amendment of the hon. member for Lambton. 

Some Hon. Members : Order. 

Mr. Tupper : Mean, treacherous coward ! 

Mr. Smith : Who is the coward, the House will 
decide — it is yourself. 

Mr. Tupper : Coward, treacherous 

Mr. Smith : I could not support them. 

Mr. Speaker : Admit the messenger. 

Sir John A. Macdonald : That fellow Smith is the 
biggest liar I ever met. 

A Message from His Excellency the Governor- 
General, by the Gentleman Usher of the Black 
Rod— 

" Mr. Speaker — 

" His Excellency the Governor-General desires 
the immediate attendance of this Honourable House 
in the Senate Chamber." 

Accordingly, Mr. Speaker, with the House, went 
up to attend His Excellency. 



316 APPENDIX 

5. Journals of the House of Commons, December 
9th, 1880. 

The Dominion Contraverted Elections Jet, 1874. 

Election of a Member of the House of Commons 
of Canada for the Electoral District of the County of 
Selkirk in the Province of Manitoba, holden on the 
19th and 26th days of September, 1878. 

Between — 

David Young and Archibald Wright, 
(Petitioners), Appellants, 
and 
Donald Alexander Smith, 
(Respondent), Respondent : 
It appearing from the reading in the above cause 
transmitted to this Court that the Honourable 
Mr. Justice Betourney rendered judgment in the 
said cause on the nth day of October, a.d. 1879, 
whereby it was adjudged and determined that the said 
Petitioners had not proved any of the allegations of 
the said Petition, that the said Election was and is 
valid, and the said Donald Alexander Smith was duly 
returned and elected to represent the said Electoral 
District in the said House of Commons, and the said 
Appellants having appealed from the said judgment 
to this Court, which said appeal was by notice given 
by the said Appellants pursuant to the Statute on 
that behalf, limited to the following specially defined 
questions or cases : — 

1. The case of Donald Alexander Smith as briber, 

and John F. Grant as bribee, and numbered 
13 in the particulars of the allegations con- 
tained in the Petition herein. 

2. The case of James Penrose as briber and Henry 

King as bribee, as numbered 14 in the par- 
ticulars of the allegations contained in the 
Petition herein. 



APPENDIX 317 

3. The case of Elias George Cocklin as the person 

hiring teams, and John Henry Mason as the 
person from whom the said EHas George 
Cockhn hired the teams as contained in 
paragraph I in the particulars of the allegations 
contained in the Petition herein. 

4. The case of Donald Alexander Smith and Henry 

Blanchard bribers, and Jean Baptise Lapointe, 
Elzear Lafemodiere, Louis Deschambault, 
L.J. A. Laveque, J.A.N. Provencher, Alexander 
Begg and A. F. De Gauthieras bribers, and 
numbered 26 in the particulars of the alle- 
gations contained in the Petition herein. 

And the said Appeal having come to be heard before 
this Court on the 12th and 13th days of May, 1880, 
in the presence of Counsel as well for the Appellants 
as the Respondent, this Court was pleased to direct 
that the said Appeal should stand over for Judgment, 
this Court did order, judge and determine, that the 
said Appeal should be and the same was allowed with 
costs to be paid by the said Respondent to the said 
Appellants. 

And the Court did order, adjudge and determine 
as follows : — 

1. That the said Donald Alexander Smith was not 

duly returned or elected, and the said Election 
was void. 

2. That so far as appeared by the said Appeal, 

limited as aforesaid, no corrupt act has been 
proved to have been committed by or with 
the knowledge or consent of any candidate at 
such Election. 

3. That the said Elias George Cocklin, an agent of 

the said Respondent at the said Election, did 
hire a certain team and vehicle to carry voters 



318 APPENDIX 

to the Poll or to the neighbourhood thereof, 
and did pay one Mason for the hire of such 
his team for the purpose of conveying to the 
Poll or the neighbourhood thereof at the said 
Election, whereby the said Elias George 
Cocklin offended against the 96th section of 
the Dominion Election Act, 1874, ^^^ under 
the 98th section of the said Section 96, which 
wilful offence is acclaimed to be a corrupt 
practice within the meaning of the said Act. 

4. That so far as appears by the said Appeal limited 

as aforesaid, corrupt practices were not, nor 
is there reason to believe that corrupt practices 
have extensively prevailed in the said Election. 

5. That the sum of one hundred dollars deposited 

by the said Appellants as security for costs 
of said Appeal be returned to them. 

6. That the original record in the above cause be 

transmitted by the Registrar of this Court to 
the proper officer of the Court below from 
whom the same was received. 
Certified. 

Robert Cassels, 

Registrar of the Supreme Court of Canada. 

To the Hon. J. G. Blanchett, 

Speaker of the House of Commons of Canada, 
Ottawa. 

6, 7, 8. Hansard, House of Commons, December 
1880. 

9. Hansard, House of Commons, p. 107, 1880. 

10. Sir Hugh Allan's charter. Statutes 1872, pro- 
vided for a grant of $30,000,000 (^6,000,000), and 
50,000,000 acres of land, to be allotted in alternate 
blocks along the entire length of the railway from 
Lake Nipegon to the Pacific coast. The grant in the 



APPENDIX 819 

prairie section would have been about 15,000,000 
acres along the railway line. The Canadian syndicate 
received in cash and in the completed portions of the 
railway, $55,000,000 (^11,000,000), and 25,000,000 
acres of selected land in the fertile belt of the prairies. 

11. Mr. George Stephens, letter to the Prime 
Minister, January, 1893, Sessional Papers, 223(2, 1883. 

12. No. 879, Interstate Commerce Commission, 
City of Spokane v. Northern Pacific Railway Company. 

13. Anglo-Persian Oil Company statement in the 
House of Commons, May 1914, by Mr. Pretyman, 
M.P., " Lord Strathcona holds ^1,000,000 of the 
Ordinary Stock of the Company." Extract from 
letter from Mr. Pretyman, June 20, 1914 : — 

" The sum which Lord Strathcona invested in 
the Persian Oil Company was ^^50,000. There 
is really nothing more to tell about his connection 
with the Persian Oil Company. What I said in 
the House of Commons pretty well covers the 
ground." 

14. Hansard^ House of Commons, December 17th, 
1880. 

Sir Richard Cartwright : We must swallow it 
whole . . . lest the people of Canada come too soon 
and too quickly to the conviction that their rights 
were being trampled on and their property wasted. 
. . . This Bill, in every important clause, every im- 
portant feature, appears to have been so drawn to 
offend every honest instinct, every wholesome preju- 
dice, of every important class from one end of the 
Dominion to the other. . . . We see wise and ex- 
perienced business men asking themselves whether the 
name of the Minister of Railways, which I see upon 
the last page of this document, really means the agent 
of the party of the first part, or the agent of the party 
of the second part. ... I don't care which of my 



820 APPENDIX 

three hypotheses you adopt, whether you say that 
these honourable gentlemen (the Government) were, 
as in my first hypothesis, crazy ; or in my second, 
bought ; or in my third, sold. Possibly there may 
have been a little of all three. 

15. On the eve of the election in the Province of 
Quebec the following pledge was demanded from 
candidates for the House of Commons by Bishops of the 
Catholic Church — 

" The Laurier-Greenway settlement of the 
Manitoba Catholic School Act having been 
judged to be unacceptable on the authority of 
the Bishops, I solemnly pledge myself, on my 
faith and on my honour, without restriction 
whatever, if I am elected member, against the 
settlement, or against any other which shall not 
have been accepted by the same religious authority, 
according to the terms of the constitution of 
Manitoba, and the judgment of Her Majesty's 
Privy Council. 

" As a devoted son of the Catholic Church, I 
pledge myself to absolutely prohibit all who act 
for me in the present electoral campaign, whether 
on the hustings or in conversation with the voters, 
to utter one word in favour of the Laurier-Green- 
way settlement, because it has not been accepted 
by religious authority. Therefore I have signed 
this pledge to the satisfaction of Monseigneur the 

Bishop of , in the presence of Rev. and 

Rev. , who have signed with me." 

16. Memorial from Canadian Liberals to Rome. 
"To His Holiness, Leo XHL 

" Most Holy Father — 

" We, the undersigned, members of the Senate 
and House of Commons of Canada, and representing 



APPENDIX 321 

therein the Liberal party, present ourselves before 
Your Holiness as respectful and devoted children of 
Holy Church, to complain of the existence of a 
state of things, which if allowed to continue, must 
be extremely dangerous to the constitutional liberties 
of this country, as well as to the interests of the 
Church itself. 

" Your Holiness has already been made aware of 
the conduct and attitude of certain prelates and of 
certain members of the secular clergy who, during 
the general election in this country in the month of 
June last, intervened in a violent manner in restraint 
of electoral freedom, taking sides openly for the Con- 
servative party against the Liberal party, and going 
so far as to declare guilty of grievous sin those of the 
electors who would vote for the Liberal party. 

" Sincerely attached to the institutions of our 
country which ensure to us Catholics the most com- 
plete liberty, we respectfully represent to Your Holiness 
that these democratic institutions under which we 
live and for which Your Holiness has many times 
expressed sentiments of admiration and confidence, 
can only exist under perfect electoral freedom. 

" Far be it from us to refuse the clergy the plenitude 
of civil and political rights. The priest is a citizen, 
and we would not for a single instant, deprive him of 
the right of expressing his opinion on any matter 
submitted to the electorate ; but when the exercise 
of that right develops into violence, and when violence 
in the name of religion, goes to the extent of making 
a grievous sin of a mere political act, there is an abuse 
of authority of which the consequences cannot but 
be fatal, not only to constitutional liberty, but to 
religion itself. 

" If in a country such as ours, where a population 
consisting of persons of various creeds, and wherein 
the Protestant denominations are in the majority, 



322 APPENDIX 

Catholics did not enjoy, in all matters relating to 
legislation, the same political freedom as their fellow- 
countrymen, they would ipso facto be placed in a 
position of inferiority, which would prevent them from 
taking the legislative part which they are entitled to take 
in the government of the country, with the possibility, 
moreover, of conflicts between the various groups of 
the population which history shows to be ever fraught 
with danger. 

" Then again, an active and violent intervention 
of the clergy in the domain of political questions sub- 
mitted to the people must, of necessity, produce 
against the great mass of the Catholic population a 
degree of criticism, manifestly prejudicial to that 
respect which religion and its ministers should ever 
inspire and command. 

" Some twenty years ago His Holiness Pius the IX, 
Your illustrious and lamented predecessor on the 
Pontifical Throne, acting through the Sacred College 
of the Propaganda, deemed it his duty to put a stop 
to certain abuses of a similar character, and forbade 
the intervention of the clergy in politics. This 
prohibition was generally respected so long as His 
Eminence Cardinal Taschereau was able to guide the 
Church in Canada ; but since old age and infirmities 
have paralysed his guiding hand, the abuses to which 
Your Illustrious predecessor had put a stop, have begun 
again, and threaten once more to create trouble among 
us and to compromise, not only Catholic interests in 
this country, but the peace and harmony which should 
exist between the various elements of our population. 

" Again affirming our absolute devotion to the faith 
of our fathers and to the Church of which you are the 
Supreme Head ; affirming our respect and attachment 
for the person of Your Holiness ; our attachment to 
the interests of our country and to the Crown of Great 
Britain, its aegis and protector, we beg that Your 
Holiness will renew in our behalf the most wise 



APPENDIX 323 

prescriptions and prohibitions of Your Illustrious 
predecessor ; protect the consciences of the Catholic 
electorate, and thus secure peace in our country by 
the union of religion and liberty — a union which Your 
Holiness has many times extolled in those immortal 
encyclicals whose precious teachings we desire in all 
things to follow ; and, lastly, grant to the children of 
the Church now addressing Your Holiness the Apostolic 
Benediction. 

" (Signed by Wilfrid Laurier and forty-six members 
of the Senate and House of Commons.) 

" Ottawa, Canada, 1896." 

17. Hansard, House of Commons, p. 239, March 
30, 1897. 

Hon. Mr. Tarte (Minister of Public Works) : 
The First Minister of this country (Hon. Wilfrid 
Laurier) was accused in Rome to the Papal authority 
of being a Freemason. Five Bishops went to Rome 
and several of them accused the Liberal party with 
being an anti-religious party. But they did some- 
thing more. They said at the head of affairs was a 
bad Catholic, while at the head of the Opposition was 
a very pious man indeed, and of course it was better 
to replace that very bad Catholic by that most pious 
man. 

Mr. Casgrain : Do I understand the honourable 
gentleman to accuse the five Bishops who went to 
Rome, or any of them, of having said that the First 
Minister of the Dominion was a Freemason or a bad 
Catholic ? 

Hon. Mr. Tarte : The Bishop of Chicoutimi was 
interviewed a few days ago, and in the public Press he 
stated that he had himself told the Papal authorities 
that Wilfrid Laurier knew so little about religion that 
he did not expect anything else from him but neutral 



324 APPENDIX 

or godless schools. I say on my responsibility here 
that some of the Bishops told the Pope himself and 
the Propaganda that the honourable gentleman who 
is at the head of affairs to-day is a very bad Roman 
Catholic. The Papal Delegate is my witness." 

1 8. At the General Elections in September 1878 
the result of the voting was — 

Donald A. Smith .... 555 
Hon. A. Morris .... 546 



Maj. for D. A. Smith ... 9 

Through the election having been declared void by 
the Supreme Court reversing the judgment of the 
trial judge, a bye-election was held September 10, 
188O5 resulting as follows — 

Colonel Scott . . . . '735 
Donald A. Smith .... ^']'] 

Maj. for Col. Scott . . . 158 

19. File 257, 1893, Supreme Court of the United 
States. 

20. Joint Stock Companies, 191 4, Canadian Pacific 
Railway — 

Ordinary Stock . . . $260,000,000 

4% Preference . . . £15,173,563 

4% Consolidated Debenture Stock £33,725,385 

Note Certificates . , . $52,000,000 



Printed in Great Britain by Richard Clay & Sons, Limited, 
brunswick st., stamford st., s.e., and bungay, suffolk. 



